Which of the Following Allows a Business the Potential to Own

question 60

Multiple Choice

Which of the following allows a business the potential to own the market until other competitors venture to enter?

• A)a decentralization strategy
• B)the cluster effect
• C)a low barrier to entry
• D)a first-mover advantage
• E)a network effect

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Definitions:

Market Supply

The total quantity of a good or service that all producers are willing and able to sell at various prices in a given market.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single participant has the power to significantly influence prices.

Market Prices

The current prices at which goods and services can be bought or sold in a marketplace, determined by supply and demand forces.

Price-Taker Market

A market situation where individual sellers or buyers have no power to influence the price of a product due to the product's standardized nature and the presence of many participants.