When the Average Cost Curve Lies Above the Entrant's Residual

question 46

Multiple Choice

When the average cost curve lies above the entrant's residual demand curve, an entrant

• A)can profitably enter the market.
• B)cannot profitably enter the market.
• C)is indifferent between entering and not entering the market.
• D)lower the incumbent's average cost curve.

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Definitions:

Blood

A type of bodily fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.

Cardiac Muscle

A specialized form of muscle found in the heart, characterized by its ability to contract involuntarily and rhythmically.

Heart

A muscular organ in most animals, including humans, which pumps blood through the circulatory system by rhythmic contractions.

Dendrite

Branching processes of a neuron; receives stimuli and conducts potentials toward the cell body.