Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

1 Subject

Download Solution

Related Solution

Unit 8 Discussion_16...
1. Answer at least 2 of the following questions in DETAIL that have NOT already been answered by a peer. The main response answering the questions is due no later than Wednesday, 11:59pm CT. Once all...

Unit 8 Discussion
Unit 8 Discussion

1. Answer at least 2 of the following questions in

Week 9 Assignment_16...
The development of Positive psychology was the fourth wave of psychology,

Week 9 Assignment 1
Week 9 Assignment 1

The development of Positive psychology was the fou

Unit 5 Quiz_16663410...
1.6th 2.Economic hardships and taxation “without representation” for Western Massachusetts Farmers 3.A division of political power between the federal government and state governments 4.nine 5.reassur...

Unit 5 Quiz
Unit 5 Quiz

1.6th 2.Economic hardships and taxation “without

Discussion 6+

Discussion 6+

Q After watching the video clip from Forrest Gump, consider that Forrest’s good luck of “being in the right place at the right time” allowed him to operate as a monopoly. Typically, the fishing industry is a highly competitive industry where economic profits are rarely made in the long run. However, in a twist of fate, Forrest’s boat is the lone survivor after a hurricane washes ashore and destroys all the other shrimp boats. Consider the barriers to entry facing potential competitors in Forrest’s monopoly market. The more contestable a market, the closer it will be to a perfectly competitive market, whereas the less contestable a market, the closer it will be to a monopoly. What barriers to entry exist in other industries that allow certain firms to operate as a monopoly? Are these barriers contestable?

View Related Questions

Solution Preview

View Complete Solution
After watching the Video clip from Forest Gump, Forest really did get lucky when the hurricane came and destroyed every shrimp boat except his. Before the hurricane he was competing with many other shrimpers and this did not let him get as many shrimp and he did not have as many customers due to the amount of competition. The barriers to entry for potential competitors in Forest’s monopoly market would be the price of a shrimping boat, they are very expensive due to all the rigging that is needed for it, also the competitors would have a hard time competing with all the boats forest already has in the market.