All of the Following Statements,except One,are Valid Statements Regarding Barriers

question 39

Multiple Choice

All of the following statements,except one,are valid statements regarding barriers to entry and the existence of large profits in an oligopoly industry.Which statement is not valid?

• A)Barriers to entry enable firms to spend large sums on research that can then be recovered in future sales.
• B)Barriers to entry lead to lower profits.
• C)The large profits enable firms to finance the development of new technology.
• D)The barriers to entry help maintain large-size firms within the industry,which enhances the ability of these firms to capture economies of scale.
• E)The barriers to entry increase the prospect of downward shifts in the short-run average cost curves.

---

Definitions:

Investment Contributions

Money that individuals or entities provide toward investment vehicles for the purpose of accumulation and growth.

Compounded Rate

Refers to the process by which interest is earned on both the initial principal and the interest previously earned.

Monthly Payments

Regular payments made once per month, often used in the context of loans, leases, or other financial agreements.

Salary Deferral Plan

A type of retirement plan where employees opt to defer a portion of their salary, which is then invested on a pre-tax basis until withdrawal at retirement.