Significant Barriers to Entry Are Not Always Sufficient to Keep

question 12

True/False

Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices, and substantial marketing resources.

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Definitions:

Psychological Contract

The unwritten and unspoken expectations, beliefs, and assumptions about the reciprocal obligations between employees and their employer.

Attribution

The process by which individuals explain the causes of behavior and events.

Self-Serving Bias

The tendency to explain personal success by internal causes and personal failures by external causes.

Fundamental Attribution Error

A cognitive bias where individuals attribute others' actions to their character rather than external factors.