1. The reason some firms are able to make pure profits is because of barriers to entry. List and define 2 barriers to entry. (5 points each) a. b. Q2. Explain why Amtrak is considered a natural monopoly_
Q1. The reason some firms are able to make pure profits is because of barriers to entry. List and define 2 barriers to entry. (5 points each)
a.
b.
Q2. Explain why Amtrak is considered a natural monopoly__________________________________________. (4 pts)
Q3. Why is the demand curve for oligopolies kinked? (8 points)
Q4. Use the concepts of fixed costs and variable costs to explain why Lord & Taylor would close but Gap which is also operating at a loss is staying open.
- Lord & Taylor closed because (5 point)
- Gap stayed open because (5 points)
America’s oldest department store, founded in 1826, heralded its “fierce
commitment” to preserving its brand in an ad in the Washington Post. But the
storied retailer was down to its last $2.8 million
After World War II, Lord & Taylor branched out into the suburbs, introduced the idea of personal shoppers and launched its distinctive logo. For all its glamorous history, the 194-year-old chain closed most of its 38 stores. Department-store chain Lord & Taylor kicked off its bankruptcy proceeding Monday with a full-page newspaper ad announcing its search for a new owner, but it has little time or money to reach a deal.
Retailers that sell non-essential goods such as clothing have been crushed by the COVID-19 pandemic. San Francisco-based Gap, which operates nearly 2,800 stores in North America, said its company-operated stores in the region are open
