If Barriers to Entry Exist in a Market,then

question 81

Multiple Choice

If barriers to entry exist in a market,then:

• A)the costs of entry and exit are relatively low.
• B)there will be few close substitutes of the product in the market.
• C)firms will be incurring losses in both the short and long runs.
• D)firms will tend to have relatively less monopoly power.
• E)the existing firms will quit the market in the long run due to mounting losses.

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Definitions:

T Distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and the population standard deviation is unknown.

Degrees of Freedom

The number of independent values or quantities which can vary in an analysis without breaking any constraints.

T Distribution

A probability distribution that is used to estimate population parameters when the sample size is small and the population variance is unknown.

Population Mean

The average of a set of values in the entire population.