In Discussions of Barriers to Entry, What Is Meant by the Term

question 136

Multiple Choice

In discussions of barriers to entry, what is meant by the term "virtuous cycle"?

• A)A virtuous cycle refers to successful research and development that leads to information that is used to develop other new products.
• B)A virtuous cycle refers to a firm using the profits from a monopoly in one market to establish a monopoly in another market.
• C)A virtuous cycle refers to the situation where the pursuit of self-interest in establishing an entry barrier leads to an increase in social welfare (the "invisible hand").
• D)A virtuous cycle refers to a situation where if a firm can attract enough customers initially, it can attract additional customers because its product's value has been increased by other customers using it, which attracts even more customers.

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Definitions:

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, significantly deviating from cultural expectations.

Major Problems

Fundamental or significant issues that are substantial in magnitude and require attention or solutions.

DSM-IV-TR

The fourth edition, text revision of the Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnose mental disorders.

Cluster C

A classification within personality disorders characterized by anxious and fearful behavior, including avoidant, dependent, and obsessive-compulsive personality disorders.