When Existing Firms Lose Customers and Profits Due to Entry

question 81

Multiple Choice

When existing firms lose customers and profits due to entry of a new competitor, a

• A)predatory-pricing externality occurs.
• B)consumption externality occurs.
• C)business-stealing externality occurs.
• D)product-variety externality occurs.

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Definitions:

Parathormone

A hormone produced by the parathyroid glands that helps regulate calcium levels in the blood.

Calcium

An essential mineral for human health, crucial for bone and teeth formation, blood clotting, and muscle function.

Bones

The hard, structural components that make up the skeleton of vertebrates, providing support, protection, and aiding in movement.

Radioactive Iodine

A form of iodine that emits radiation, used in medical treatments and diagnoses, especially for thyroid disorders.