As a Barrier to New Entry,absolute Cost Advantages Can Be

question 81

Multiple Choice

As a barrier to new entry,absolute cost advantages can be based on

• A) continuous advertising of brand and company names.
• B) high product quality, service-oriented innovations, and good after-sales service.
• C) cost reductions that arise from the mass production of standardized output.
• D) the unique ability of established companies to spread fixed costs over a large volume.
• E) control over low-cost inputs required for production, be they labor, materials, equipment, or management skills.

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Definitions:

Demand-Side Market Failure

A situation where the demand curve does not reflect consumers' full willingness to pay for a good or service, often due to externalities or public goods.

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The additional satisfaction or utility gained from consuming or producing one more unit of a good or service.

Highway Programs

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