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Consider the market for aluminum. The Aluminum Company of America (Alcoa) used to control all U.S. sources of bauxite, a key ingredient in the production of aluminum. Given that Alcoa did not sell bauxite to any other companies, Alcoa was a monopolist in the U.S. aluminum industry from the late-nineteenth century until the 1940s. Which of the following best explains the barriers to entry that exist in this scenario?
Increasing returns to scale
Legal barriers
Exclusive ownership of a necessary resource
Genentech owns a patent on tissue plasminogen activator (TPA), which is an enzyme that helps the body break down blood clots. TPA is particularly valuable to cardiac patients, since it often allows heart problems to be treated with medication rather ..
At Forest Point Construction, your boss says that he can estimate the total project time based on his personal experience. You are trying to convince him that he should use project management techniques to handle a complex project. What is the correc..
At an initial point on the aggregate demand curve the price level is 125, and real gdp is 10 trillion. when the price level falls to a value of 120, total autonomous expenditures increased by 250 billion. the marginal propensity to consume is 0.75. t..
Which would have the most significant effect on the U.S. economy as measured by changes in real GDP?
What is held constant when a demand curve for a specific product (shoes,apples) is constructed?
For tax purposes, “gross income” is all the money a person receives in a given year from any source. But income taxes are levied on “taxable income” rather than gross income. The difference between the two is the result of many exemptions and deducti..
On December 12 of 1980, Apple Computer sold shares in an initial public offering (IPO) for $22 per share. Since then, the stock has split 2-for-1 three times: June of 1987, June of 2000, and February of 2005. If you bought 100 shares at the IPO and s..
Some economists argue that it is possible to raise the standard of living by reducing population growth.
Patricia is researching venues for a restaurant business. She is evaluating three major attributes that she considers important in her choice: taste, location, and price. The value she places on each attribute, however, differs according to what type..
This question uses the general monetary model, where L is no longer assumed constant.
Sally earned $25,000 per year before she became a mother. After she became a mother, she told her employer that she would not be willing to work for anything less than $50,000. Her decision is based on
Discuss - Deficit spending paves the road to ruin. Explain how much of the national debt is held by foreigners.
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