A firm producing a relatively large quantity before any rivals have entered the market, is an example of first-mover advantage
What will be an ideal response?
True. Producing a relatively large quantity is a credible threat to potential rivals.
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To be effective, an import quota must
a. reduce the price and increase the quantity of imports b. set the price of the imported good higher than the domestic equilibrium price c. restrict imports to less than would be imported under free trade d. restrict imports to less than exports in trade with that particular country e. be directed at the product of a specific country
Production through the firm is often more efficient than market exchange when
a. production requires many transactions among many resource owners b. production requires few transactions between two resource owners c. the cost of transacting business through market relations is less than the cost of undertaking the same activity within the firm d. inputs are easily identified, measured, priced, and hired e. the costs of determining inputs and negotiating contracts are low