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Free CIMAPRA17-BA1-1 Exam Braindumps
BA1 - Fundamentals of Business Economics Questions 171–175 (page: 36)

Updated On: 9-Feb-2026
Page 36 of 95
PDF with 468 Questions

All of the following are barriers to entry into an industry except which one?

  1. The existence of significant economies of scale
  2. Important production processes are subject to patents
  3. Low price elasticity of demand for the product
  4. Extensive product differentiation in the industry

Answer(s): C



All of the following would tend to lead to an industry being dominated by a small number of firms except one.
Which ONE is the exception?

  1. Significant economies of scale in production
  2. The existence of entry barriers to the industry
  3. High initial capital costs in production
  4. Extensive consumer knowledge of products and prices

Answer(s): D



Which of the following provides a definition of a free good?

  1. No charge is made for it by its supplier
  2. Its provision is financed by taxation
  3. It is produced from renewable resources
  4. It is available at zero cost of production in unlimited quantities

Answer(s): D



All of the following would be motives for a horizontal merger except one.
Which ONE is the exception?

  1. To reduce competition in the industry
  2. To secure economies of scale
  3. To secure sources of supply
  4. To pool technology and research

Answer(s): C



The government may wish to control horizontal mergers between firms because

  1. Firms will acquire control of their sources of supply
  2. Mergers lead to large companies and economies of scale
  3. Such mergers result in increased concentration in industries
  4. It is against consumer interests for producers to acquire control of retail outlets

Answer(s): C



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