For an incumbent, investing in plant and equipment that reduces marginal cost while raising total cost makes sense if

A) the incumbent's profit fro, producing the entry-deterring level of output after making the investment exceeds the profit the firm would earn if it didn't make the investment and entry occurred
B) the incumbent's profit from producing the entry-deterring level of output after making the investment is positive
C) the potential entrant cannot enter the market profitably after the incumbent makes the investment and produces the entry-deterring level of output
D) the potential entrant would not enter the market anyway


A) the incumbent's profit from producing the entry-deterring level of output after making the investment exceeds the profit the firm would earn if it didn't make the investment and entry occurred

Economics

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The major characteristic of a monopoly is

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Advertising reduces the cost of obtaining a commodity by saving the time spent searching for price quotes and other information related to this commodity

Indicate whether the statement is true or false

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Which of the following most accurately indicates the implications of an economy's production possibilities curve?

a. If all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced. b. If all the resources of an economy are being used efficiently, it is generally possible to produce more of one good without having to sacrifice the production of other goods. c. Over time, it is generally impossible for a country to expand its production of goods. d. An economy will automatically move toward a point that lies outside of the production possibilities curve unless proper government policy constrains production.

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The typical total-cost curve is U-shaped

a. True b. False Indicate whether the statement is true or false

Economics