Incumbents are unaffected by fixed costs of entry while potential entrants are affected by them because
A) for potential entrants the cost is avoidable, while for the incumbent, it is not.
B) fixed costs will be greater for the potential entrant than for the incumbent.
C) fixed costs are zero for the incumbent.
D) incumbents will act to prevent entry at all costs.
A
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The Fed established stock market margin requirements to reduce the possibility of a stock market panic
Indicate whether the statement is true or false
As the dollar appreciates, the foreign price of United States goods ______________, ultimately shifting the United States AD curve ________________
A) rises; rightward B) rises; leftward C) falls; rightward D) falls; leftward
Figure 3.4 illustrates the demand for tacos. An increase in the demand for tacos is represented by the movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D1.
The "interest rate effect" can be described as an increase in the price level that raises the interest rate and chokes off
A) government spending. B) government spending and unplanned investment. C) investment and consumption spending. D) net exports.