High barriers to entry protect the market power of existing firms and discourage the formation of firms which:
a. invest heavily in research and development activities.
b. use illegal procedures to capture the market.
c. are inefficiently small and cannot realize economies of scale.
d. are large enough to dominate the existing firms.
C
Economics
You might also like to view...
Other things constant, a lowering of interest rates on used car loans would tend to
A) reduce the demand for used car loans. B) increase the demand for used car loans. C) increase the supply of used car loans. D) reduce the supply of used car loans. E) do none of the above.
Economics
Which of the following may result in a higher equilibrium price for a product?
a. Advertising b. Expectations c. Imperfect information d. All of the above answers are true. e. None of the above answers a.-c. are true.
Economics