When a New Firm Considers Entering a Market, It Takes

question 233

Essay

When a new firm considers entering a market, it takes into account only the profit it would make. What are the two external effects that occur in the market that the firm does not consider?

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Definitions:

Negative

Refers to a value or expression that represents less than zero, or a pessimistic outlook or assessment in various contexts.

Self-Awareness

An understanding of one's self, including their emotions, character, motivations, and longings.

Narcissism

A characteristic of personality marked by an exaggerated feeling of self-worth, a strong desire for abundant attention and praise, and an absence of compassion for others.

Marry

The legal or formal union of two people as partners in a personal relationship, recognized by law or cultural norms as a marriage.