One Barrier to Subsequent Entries in an Industry Dominated by First

question 9

Multiple Choice

One barrier to subsequent entries in an industry dominated by first movers is

• A) a laissez-faire stance toward trade adopted by first movers.
• B) implementation of policies to maximize imports and minimize exports.
• C) specializing in the production of goods for which firms have a comparative advantage.
• D) the ability of first movers to benefit from increasing returns.
• E) a decrease in the variety of goods available to consumers and increase in the cost of existing goods.

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Definitions:

Early 1900s

A period that marks the beginning of the 20th century, characterized by rapid industrialization, technological advancements, and significant socio-political changes worldwide.

Tragedy of the Commons

A situation in which individuals, acting independently and rationally according to their own self-interest, deplete a shared resource, leading to the detriment of the whole group.

Herd Immunity

A form of indirect protection from infectious diseases that occurs when a large percentage of a population has become immune to an infection, thereby providing a measure of protection for individuals who are not immune.

Vaccinated Community

A population in which a majority of members have received vaccinations against specific diseases, contributing to herd immunity.