The Business-Stealing Externality States That Entry of a New Firms

question 55

True/False

The business-stealing externality states that entry of a new firms imposes a cost on existing firms because they lose customers.

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Definitions:

Response Set

A tendency for a person to respond to questions or situations in a patterned way, often based on habit or bias rather than thoughtful consideration.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the effect of consequences on future behavior.

Classical Conditioning

This learning strategy involves pairing two stimuli repeatedly; a response that initially comes from the second stimulus eventually comes from the first stimulus on its own.

Social Learning

The process of acquiring behaviors, skills, or attitudes through observing and imitating the actions of others.