If a New Entrant (Or an Established Firm) Wants to Leave

question 81

Multiple Choice

If a new entrant (or an established firm) wants to leave a contestable market,

• A) all, or nearly all of, the invested capital values can be recovered.
• B) another firm will always enter to take its place.
• C) it must accept large losses in its capital investment, so it is unlikely to exit.
• D) its leaving will be contested by regulators in the market who seek to prevent exit.

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Definitions:

Cannon-Bard

A theory of emotion that proposes that emotions and bodily changes occur simultaneously, rather than one causing the other.

Emotional Learning

The process of acquiring and understanding emotions, and the ability to recognize and manage one's own and others' emotions.

Seligman

Martin Seligman, a psychologist renowned for his work on the theory of learned helplessness, positive psychology, and well-being.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.