Which of the Following Is Not an Isolating Mechanism That

question 7

Multiple Choice

Which of the following is not an isolating mechanism that falls under the heading of early-mover advantage?

• A)Learning curve
• B)Reputation and buyer uncertainty
• C)Buyer switching costs
• D)Network effects
• E)Superior access to inputs or customers

---

Definitions:

Efficiency Loss

Reductions in combined consumer and producer surplus caused by an underallocation or overallocation of resources to the production of a good or service. Also called deadweight loss.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Actual Production

The quantity of goods or services produced by a firm, industry, or economy within a specific period, factual and not estimated.

Consumer Surplus

The variance between what consumers are ready and capable of spending on a product or service and the actual sum they end up paying.