Which of the Following Creates a Barrier to Subsequent Entries

question 56

Multiple Choice

Which of the following creates a barrier to subsequent entries in an industry dominated by first movers?

• A)The laissez-faire stance toward trade adopted by first movers
• B)Implementation of policies to maximize imports and minimize exports
• C)Specializing in the production of goods for which firms have an comparative advantage
• D)The ability of first movers to benefit from increasing returns
• E)Decrease in the variety of goods available to consumers and increase in the cost of existing goods

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Definitions:

Assignee

A person to whom an assignment is made.

Obligor

In contract law, the party who is obligated to deliver on a promise or to undertake some act.

Assignment

A legal transfer of rights, benefits, or obligations from one party to another.

Quantum Meruit

is a Latin term meaning "as much as he has earned," used in legal contexts to describe the entitlement to be paid for services rendered or work done when no contract exists or where a contract exists but cannot be enforced.