As a Result of the Economic Profit Earned by the First

question 53

Multiple Choice

As a result of the economic profit earned by the first video rental outlets,

• A)existing firms were able to successfully lobby the government for patent protection
• B)competitors were attracted to the industry, and their entry reduced economic profit
• C)demand dried up
• D)Blockbuster saw an opportunity to take over the industry
• E)competitors were discouraged from entering the industry

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Definitions:

Special Cause Variation

Variation in a process caused by identifiable factors, typically indicating that the process is not in control.

Process Capability

A statistical measure of a process's ability to produce output within given specifications.

Out Of Control Signals

Indicators within a process control or statistical control chart that highlight when a process is deviating from its stable state or specified limits.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.