Isolating Mechanisms Are

question 39

Multiple Choice

Isolating mechanisms are

• A)barriers that slow or stop the equalization of profits between firms, such as barriers to imitation.
• B)mechanisms that speed up the equalization of profits between firms.
• C)barriers that prevent potential entrants from grabbing a significant market share in the industry.
• D)mechanisms that limit or enhance the ex post equilibration of rents among individual firms, depending on their relative bargaining powers.

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Definitions:

Social Inequality

The presence of unequal opportunities and rewards for different social positions or statuses within a group or society.

Functional

Working or operating in a way that fulfills the purpose or task for which something was designed.

Upper Class

A social group at the top of a socioeconomic hierarchy, usually possessing significant wealth, power, and influence.

Capitalist Economy

An economic system in which private individuals rather than the state own and control property and businesses, and the production of goods and services is based on supply and demand in the market.