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Incumbent Firms May Have a Whole Range of Cost Advantages

question 82

True/False

Incumbent firms may have a whole range of cost advantages compared to new competitors.


Definitions:

Profits

The surplus remaining after total costs are deducted from total revenue, and an indicator of the financial health and success of a business.

Hydraulic Fracturing

A technique used in the oil and gas industry to increase extraction rates by injecting fluid into subterranean rocks to create fractures.

Fracking

A process of injecting liquid at high pressure into subterranean rocks, boreholes, etc., to force open existing fissures and extract oil or gas.

Natural Gas

A fossil fuel used primarily for heating, cooking, and electricity generation, consisting mainly of methane and other hydrocarbons.

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