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.

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Definitions:

Traditional Agenda-Setting

A theory in mass communication that suggests media doesn't tell us what to think, but rather what to think about by selecting which issues are highlighted.

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Digital platforms and technologies that enable users to create, share content, and participate in social networking.

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Organizations or platforms that publish, broadcast, or transmit news content to the public.

Decision-Making

The cognitive process of selecting a course of action among multiple alternatives.