If Only One Firm Operates in a Market,and a Potential

question 66

Multiple Choice

If only one firm operates in a market,and a potential entrant is blockaded from entering the market,then the incumbent firm must

• A) have acted to prevent entry.
• B) be pricing where price equals marginal cost.
• C) be a natural monopoly.
• D) be the Stackelberg leader.

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Definitions:

Meals Served

The total number of meals prepared and provided to customers over a given period, often used in the hospitality or restaurant industry as a performance metric.

Cost Drivers

Factors that cause a change in the cost of an activity, such as machine-hours or labor hours, influencing direct and indirect costs.

Guests

Individuals invited to partake or be present in an event, establishment, or locale.

Jeeps

A brand known for manufacturing rugged off-road and sports utility vehicles.