Dedicated Machines

question 106

Multiple Choice

Dedicated machines:

• A)require high- skilled operators.
• B)are ideal for short production runs.
• C)play a significant role in ATM.
• D)produce a narrow range of products.

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Definitions:

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, which can include high startup costs, regulatory requirements, or established brand loyalty.

Economic Profits

The excess of total revenue over total costs, including both explicit and implicit costs, signifying a return beyond the normal profit level.

Natural Monopoly

A market situation where due to high fixed or startup costs, a single firm can supply a product or service at a lower cost than any potential competitor, leading to a dominance of the market.

Long-Run Average Costs

Reflects the per-unit cost of production when all inputs are considered variable over time, highlighting economies of scale.