Consider the market for aluminum-legal barriers

Assignment Help Business Economics

Reference no: EM131009711

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

Reference no: EM131009711

Questions Cloud

Calculate the inverse demand function-elasticity of demand : A firm has the exogenous cost function C(Q) = 354Q-30Q^2 + Q^3. Compute the marginal cost function. Compute the average cost function. For the remaining parts, assume that the demand for the firm’s product is D(P) = 25- √P. Calculate the inverse dema..

Given there is an overwhelming scientific consensus : Given there is an overwhelming scientific consensus that global warming exists, why do many conservatives (like the Republicans running for President) deny its existence?

Independently go shopping for dresses for high-school prom : Three friends (Julie, Kristin, and Larissa) independently go shopping for dresses for their high-school prom. Upon reaching the store, each girl sees only three dresses worth considering: one black, one lavender, and one yellow. Provide the game tabl..

Should you keep on producing the good : Your average total cost is $24; the price you receive for the good is $18. Should you keep on producing the good? Why?

Consider the market for aluminum-legal barriers : 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 monopolis..

Increasing returns to scale : Consider the market for electricity. In this industry, low average total costs are obtained only through large-scale production. In other words, the initial cost of setting up all the necessary wiring makes it risky and most likely unprofitable for a..

Consider the market for aluminum : 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 monopolis..

The monopolist should shut down when price is equal : A monopolist's demand function is P = 1624 - 4Q, and its total cost function is TC = 22,000 + 24Q -4Q2 + 1/3 Q3, where Q is output produced and sold. G) The monopolist should shut down when price is equal to or lower than?

Plans for your long distance telephone service : Suppose you are trying to choose between 2 plans for your long distance telephone service. If you choose plan 1, your monthly bill will be computed according the equation: B is your monthly billing fee in dollars and Tis your monthly volume of long d..

User Account

All Pages