Firms and Industries Characterized by Heavy Fixed Capacity Costs and Lengthy

question 72

Short Answer

Firms and industries characterized by heavy fixed capacity costs and lengthy periods required to add new capacity operate under a(n)___________________________________.

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Definitions:

Continental Hot Spot

A region on a continent where hot plumes of mantle material rise, causing volcanic activity and thermal phenomena.

Continental Rifting

The process by which a continent stretches and splits, possibly leading to the creation of new ocean basins.

Seafloor Spreading

A geological process in which new oceanic crust is formed at mid-ocean ridges and slowly moves away from the ridge.

Continental Hot Spot

A volcanic region thought to be fed by underlying mantle that is anomalously hot compared with the surrounding mantle, found in the interior of continental plates.