When Existing Firms Lose Customers and Profits Due to Entry

question 81

Multiple Choice

When existing firms lose customers and profits due to entry of a new competitor, a

• A)predatory-pricing externality occurs.
• B)consumption externality occurs.
• C)business-stealing externality occurs.
• D)product-variety externality occurs.

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Definitions:

Lesioning

A technique used in neuroscience involving the targeted destruction of brain tissue to study the function of specific brain areas.

Electroconvulsive Therapy

A psychiatric treatment involving electrically induced seizures used primarily as a treatment for severe depression.

Obsessive-Compulsive Disorders

A mental health disorder characterized by repetitive, unwanted thoughts (obsessions) and irrational, excessive urges to do certain actions (compulsions).

Lewy Body

Circular fibrous structure found in several neurocognitive disorders; forms within the cytoplasm of neurons and is thought to result from abnormal neurofilament metabolism.