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:

Expropriation

The act of a government taking private property for public use, with compensation provided to the owner.

Confiscation

The act of seizing property by authority, often without compensation, for legal or government use.

Expropriation

The act by a government of taking privately owned property to public use, typically with compensation to the owners.

Payment Of Compensation

The process of providing financial remuneration to an individual or entity for loss, damage, or injury.