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:

Flow of Consciousness

A term used in psychology and literature to describe a person's inner stream of thoughts, feelings, and awareness, often in a continuous flow.

Mind Wandering

A cognitive process of thoughts shifting away from a task towards unrelated concerns or fantasies, often occurring unconsciously.

Circadian Rhythm

The natural, internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.

Biological Clock

An internal mechanism that regulates physiological and behavioral functions on a cyclical basis, such as sleep and wakefulness.