When entry barriers into a market are high :. i. a monopolist will always be able to make an economic profit.
b. rival firms will enter and drive price down to the level of per-unit costs if the firms in the market are making economic profit.
c. entry into the market will not take place, at least not quickly, even if the firms currently in the market are making economic profits.
d. the producers in the market will have little or no incentive to produce efficiently (at a low cost).

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.