If Barriers to Entry Are High and Products Are Somewhat

question 11

Multiple Choice

If barriers to entry are high and products are somewhat differentiated:

• A) the industry is probably perfectly competitive.
• B) the industry is probably monopolistically competitive.
• C) the industry is probably a differentiated monopsony.
• D) economic profit might be sustainable.
• E) the situation cannot exist.

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Definitions:

Virtual Organizations

Businesses or entities that operate primarily online or through electronic collaboration, without a traditional physical presence.

Modular Organizations

Organizations structured in such a way that components or units are easily interchangeable or adaptable for flexibility in operation.

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.

Newsprint Manufacturer

A company that specializes in the production of newsprint, a type of low-cost, non-archival paper primarily used for printing newspapers and other publications.