While Having a Discussion, Technician a Says That to Tell

question 8

Multiple Choice

While having a discussion, Technician A says that to tell the difference between a brake fluid leak and gear oil from an axle leak, try washing the fluid off with water. Technician B says that neither brake fluid nor gear oil is water soluble so the use of water would prove nothing. Who is correct?

• A)A only
• B)B only
• C)Both A and B
• D)Neither A nor B

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Definitions:

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new firms to enter a market, including high startup costs, regulatory hurdles, and established competition.

Monopoly

A market structure characterized by a single seller selling a unique product with no close substitutes, leading to significant control over the market price.

Close Substitutes

Products or services that can serve as replacements for each other with minor adjustments, often similar in function or purpose.

Barriers To Entry

Factors that make it difficult for new firms to enter a market, such as high startup costs, complex regulations, or entrenched competitors.