Isolating Mechanisms Are

question 34

Multiple Choice

Isolating mechanisms are:

• A)Barriers to the erosion of interfirm profit differentials
• B)Mechanisms that impede the equilibration of rents between industries
• C)The same as "barriers to mobility"
• D)Sources of disequilibrium that cause the profitability of different firms in an industry to diverge over time

---

Definitions:

Empiricism

A theory in philosophy that states knowledge comes only or primarily from sensory experience.

Speculation

The process of forming theories or conjectures without firm evidence, often in the context of financial investments.

Empirical

Concentrates on, is related to, or can be substantiated through empirical observation or personal experience rather than through theoretical speculation or pure logical analysis.

Systematic Observation

The methodical and structured observation and recording of behavior or phenomena in natural or controlled conditions.