A group of musicians performing at a concert for charity in New York is an example of a cluster in economics

To deter a potential entrant, an existing firm in a market may threaten to sharply increase production so that the entrant will be left with a small share of the market

The firm can make this threat credible by limiting its own options, and possible actions of this type include: A) signing long-term sales contracts that commit the firm to high levels of output. B) building a very large factory that could potentially produce enough output to meet most of the market demand. C) signing long-term purchase contracts for large amounts of production inputs. D) all of the above

Which of the following is not a result if the quantity supplied exceeds the quantity demanded in a market?

A. Deadweight loss B. Inefficiency C. Overproduction D. Shortage