A manufacturer of digital music players uses a proprietary file format that is not used by the other firms in the market
This action by the firm may be an example of using a ________ to reduce the number of firms in the market and to maintain a relatively inelastic demand for its products. A) natural monopoly
B) positive externality
C) subsidy
D) barrier to entry
D
You might also like to view...
Dell Computers allows potential consumers to customize personal computers to their desires. Dell's strategy is successful because offering bundles that more exactly meet a consumer's preference allows Dell to extract more consumer surplus
Indicate whether the statement is true or false
An increase in the U.S. demand for the Mexican peso
A) causes an increase in the U.S. dollar price of a Mexican peso. B) causes the Mexican peso to appreciate. C) causes the U.S. dollar to depreciate. D) causes Mexican goods to be cheaper.
re insurance is used by insurance companies faced with:
A. the problem of moral hazard. B. the prospects of a large but diversified risk. C. inadequate capital to handle a potential loss. D. insolvency.
________ is the cost of using resources to produce another unit of a good.
A. Price B. Marginal cost C. Total cost D. Marginal revenue