Which of the Following Is True

question 192

Multiple Choice

Which of the following is true?

• A) Competitive forces are stronger in markets with high entry barriers than in those where entry barriers are low.
• B) Quality competition is an important element of the competitive process.
• C) If the production of a good is highly profitable, the development of substitute products will be discouraged.
• D) High barriers to entry are only the result of natural factors not artificial factors like government regulations.

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Definitions:

Portfolio's Sigma

A statistical measure representing the volatility or risk associated with a portfolio's returns.

Beta

A measure of the systematic risk of a security or a portfolio in comparison to the market as a whole.

Adjustment Technique

A method used to modify financial or statistical data for comparisons, analysis, or to meet certain criteria or assumptions.

Regression Equation

A statistical method used to determine the relationship between a dependent variable and one or more independent variables.