Regarding Fixed Costs of Entry

question 10

Multiple Choice

Regarding fixed costs of entry

• A)both incumbents and potential entrants are affected by them.
• B)potential entrants are affected by them while incumbents are not.
• C)neither incumbents nor potential entrants consider them.
• D)incumbent's decisions are affected by them, while the potential entrant ignores them.

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Definitions:

American Firms

Companies or corporations that are registered and operate in the United States, contributing to its economy.

Justice Department

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.

Market Power

The ability of a company or entity to influence the price of goods or services in a market.

Monopoly

An industry in which one firm produces all the output. The good or service produced has no close substitutes.