Scenario 9.2 Consider a Publicly Held Firm (One Whose Stock Shares Are

Multiple Choice

Scenario 9.2
Consider a publicly held firm (one whose stock shares are traded on the stock exchange) that earned revenue worth $350 million and incurred land, labor, and debt costs worth $320 million. The stockholders who have invested a total of $100 million in this firm could have earned 10 percent return on other comparable investments.
-One assumption of the model of perfect competition is that entry into the market is easy. This implies that:

A) there are government licensing requirements for a firm to enter the market.
B) there are no significant economies of scale relative to the size of the market.
C) one firm has gained a patent in the industry.
D) significant economies of scale do exist in the industry.
E) there is no government intervention.