The Incumbency Advantage Is Worth Somewhere Between 5 and 10

question 2

Multiple Choice

The incumbency advantage is worth somewhere between 5 and 10 percentage points. It has been in decline since when?

• A) 1960s
• B) 1970s
• C) 1980s
• D) 1990s

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the market.

Marginal Cost

The increase in total production costs resulting from the production of one additional unit of a product or service.

Downstream Division

Part of a company involved in the final processing, distribution, or selling of a product.

Intermediate Good

A product used in the manufacturing process to produce a final good or finished product, not sold directly to consumers.