Multiple Choice
Which of the following areas of economics studies issues such as ways to reduce teenage smoking?
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0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is considered a barrier to entry that protects an inventor from its rivals?
A
Elastic demand
B
Perfect competition
C
Patent
D
Free market entry
Verified step by step guidance1
Understand the concept of 'barriers to entry' in microeconomics: these are obstacles that make it difficult for new firms to enter a market and compete with existing firms.
Identify the options given and analyze whether they serve as barriers to entry. For example, 'Elastic demand' refers to how quantity demanded responds to price changes, which is not a barrier to entry.
'Perfect competition' describes a market structure with many firms and free entry and exit, so it does not protect an inventor from rivals.
'Free market entry' means there are no restrictions for new firms to enter the market, so it is not a barrier either.
Recognize that a 'Patent' is a legal protection granted to an inventor, giving exclusive rights to produce and sell an invention for a certain period, effectively preventing rivals from entering the market with the same product. This is a classic example of a barrier to entry.
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