Incumbents Are Unaffected by Fixed Costs of Entry While Potential

question 64

Multiple Choice

Incumbents are unaffected by fixed costs of entry while potential entrants are affected by them because

• A) for potential entrants the cost is avoidable, while for the incumbent, it is not.
• B) fixed costs will be greater for the potential entrant than for the incumbent.
• C) fixed costs are zero for the incumbent.
• D) incumbents will act to prevent entry at all costs.

Identify common characteristics between American and Northern European manufacturing regions.

Assess the significance of foreign investment, especially British, in American industrial development.

Describe the role and development of trusts in American industries, with a focus on the oil industry.

Explain the attitudes of industrial leaders towards their wealth and success.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing its current assets to its current liabilities.

Note Payable

A written promise to pay a specified amount of money, usually with interest, at a future date.

Account Payable

An account payable is a liability representing an amount owed by an entity to a supplier or creditor for goods or services received but not yet paid for.

Return on Assets Ratio

The Return on Assets Ratio measures a company's ability to generate earnings from its assets, calculated by dividing net income by the average total assets.