Incumbents Are Unaffected by Fixed Costs of Entry While Potential

question 64

Multiple Choice

Incumbents are unaffected by fixed costs of entry while potential entrants are affected by them because

• A) for potential entrants the cost is avoidable, while for the incumbent, it is not.
• B) fixed costs will be greater for the potential entrant than for the incumbent.
• C) fixed costs are zero for the incumbent.
• D) incumbents will act to prevent entry at all costs.

Recognize and construct gender-neutral sentences in professional writing.

Understand the difference between concrete and abstract words, and the benefits of using concrete words for clarity.

Recognize the use of passive voice and its impact on the clarity of communication.

Understand the definition and importance of plain language in effective communication.

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Definitions:

Negotiable Instrument

A written agreement that commits to paying a precise amount of money, on demand or at a fixed time, with the person who will make the payment clearly identified on it.

Original Tenor

The initial agreed-upon duration or terms of a financial instrument or loan.

Conditional Indorsement

A stipulation placed on a negotiable instrument (like a check) that modifies the way the instrument is to be redeemed.

Blank Indorsement

A signature by the holder on the back of a negotiable instrument, such as a check, without specifying a particular endorsee, allowing any holder to claim the funds.