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.

---

Definitions:

Individual Productivity

The rate or efficiency at which an individual can produce outcomes or complete tasks, often in a work or academic setting.

Ordinary People

Refers to average individuals in society who are not distinguished by wealth, position, or special achievements.

Agents of Destruction

Refers typically to factors or entities that cause significant harm or damage, whether physically, psychologically, or environmentally.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.