If There Are Low Barriers to Entry, a Monopolist

question 52

Multiple Choice

If there are low barriers to entry, a monopolist

• A)might undertake investment to lower marginal cost in the face of a potential rival.
• B)will undertake investment to lower marginal cost in order to increase profits.
• C)will not undertake investment to lower marginal cost under any circumstances because profits are lower.
• D)Both A and B.

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Definitions:

Achievement Need

The psychological drive to excel, achieve in terms of set standards, and strive for success.

Situational Determinants

Situational determinants are external factors that influence an individual's behavior, varying depending on the context or environment.

Social Bonds

Connections among individuals in a society that foster trust, cooperation, and collective action.

Associate

To connect or link in one's mind; to relate one idea or concept with another.