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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Gil can consume either pens or milkshakes. Both pens and milkshakes sell for $1. Gil finds that when his income is spent, his marginal utility of pens will be 10 while his marginal utility of milkshakes will be 8
Gil could increase his utility without violating his budget by consuming A) more pens and fewer milkshakes. B) more pens and more milkshakes. C) fewer pens and fewer milkshakes. D) fewer pens and more milkshakes.
Inflation targeting makes more sense than unemployment targeting, because ________
A) monetary policies affect inflation, not unemployment B) expected unemployment is not a key determinant of the unemployment rate C) a commitment to avoid high inflation is inherently more credible than a commitment to avoid high unemployment D) most voters and most elected officials are more concerned about inflation
When a person's income increases:
A. the individual's budget constraint shifts straight out, maintaining the same slope. B. the individual's budget constraint shifts straight in, maintaining the same slope. C. the individual's budget constraint rotates out and becomes flatter. D. the individual's budget constraint rotates in and becomes steeper.
Which of the following statements about the FDIC is untrue?
a. It sets the legal reserve requirement. b. It conducts bank audits and examinations. c. It provides demand deposit insurance for participating banks. d. It helps prevent bank failures. e. It is a government agency.