If Only One Firm Operates in a Market,and a Potential

question 66

Multiple Choice

If only one firm operates in a market,and a potential entrant is blockaded from entering the market,then the incumbent firm must

• A) have acted to prevent entry.
• B) be pricing where price equals marginal cost.
• C) be a natural monopoly.
• D) be the Stackelberg leader.

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Definitions:

Monte Carlo Simulation

A computational technique that uses random sampling and statistical modeling to estimate mathematical functions and simulate the behavior of complex systems.

Cumulative Probability

The probability of an event occurring up to a certain point in time or over a range of values, often visualized through a cumulative distribution function.

Monthly Sales

The total volume or dollar value of all sales transactions made by a business within a month, used as an indicator of business performance and market demand.

Probability

The likelihood or chance of a specific outcome occurring, usually expressed as a ratio or percentage.