Related Industries Create the Probability That New Companies Will Enter

question 47

Multiple Choice

Related industries create the probability that new companies will enter the market.This ________ competition and forces existing firms to improve ________.

• A) decreases; innovation
• B) decreases; efficiency
• C) increases; efficiency
• D) decreases; sales

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Definitions:

Nonpaying Consumers

Individuals who consume a product or service without directly contributing to its cost, often in the context of public goods.

Government

The organization or system through which a community or society is governed, often responsible for creating and enforcing laws.

Market Failure

A scenario where goods and services distributed by an unrestricted market fail to achieve efficiency, frequently making a case for governmental involvement.

Poor Information

A situation where individuals or entities make decisions based on incomplete, inaccurate, or misleading information.