Entry of New Firms in an Decreasing-Cost Industry Leads to an Upward

question 184

True/False

Entry of new firms in an decreasing-cost industry leads to an upward shift of the LRAC curve.

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Definitions:

Assets

Economic resources or valuable items owned by an individual or business, capable of being converted into cash.

Dissenting Shareholder

A shareholder who disagrees with a corporate decision and is granted certain rights, like the right to be bought out under specific conditions.

Appraisal Right

A dissenting shareholder’s right to have his or her shares appraised and to receive monetary compensation from the corporation for their value.

Shareholder Vote

An act where individuals or entities holding shares in a corporation participate in deciding on corporate matters through voting.