Anything That Prevents New Firms from Competing on an Equal

question 72

True/False

Anything that prevents new firms from competing on an equal basis with existing firms in an industry is called a barrier to entry.

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Definitions:

Spot Markets

Markets where financial instruments or commodities are bought and sold for immediate delivery, contrasting with futures markets where delivery is set for a future date.

Competitive Bidding

A procurement process where multiple providers submit bids for a contract, offering their best prices or proposals, with the aim of securing business by outcompeting others.

Fair Price

A price considered reasonable or justifiable for a product or service, often based on factors like cost, market demand, and ethical considerations.

Efficient Means

Methods or processes that maximize productivity and minimize waste, costs, or effort, leading to optimal performance or output.