Which of the Following Helps a Firm to Preempt Available

question 20

Multiple Choice

Which of the following helps a firm to preempt available demand, gain cost advantages related to volume, and build an enduring brand ahead of later competitors?

• A)Monopolistic practices
• B)Comparative advantages
• C)Absolute advantages
• D)First-mover advantages
• E)Mercantilism

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Definitions:

Pigouvian Tax

A tax imposed on any market activity that generates negative externalities, intended to correct an undesirable or inefficient market outcome.

Socially Optimal

A condition or outcome that maximizes the overall welfare of society, often considered in economics and public policy to evaluate efficiency and equity.

Pollution

The presence or introduction into the environment of substances or things that have harmful or poisonous effects.

Pigouvian Subsidy

A financial incentive given by the government to encourage activities that have positive externalities, or beneficial effects on society that are not reflected in the market price.