Resources Are Not Free to Move into and Out of an Industry

question 85

Multiple Choice

Resources are not free to move into and out of an industry when:

• A)there are no differential impediments across firms in the mobility of resources.
• B)a firm experiences economies of scale.
• C)an incumbent firm has an exclusive government patent.
• D)firms are price takers.

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Definitions:

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.

Conceptual Skills

The ability to understand complex ideas and concepts, and to apply strategic thinking and problem-solving at a high level.

Centralized Decisions

Decision-making process where important decisions are made by a small group of people, typically higher management, at the center of the organization.

Top Executives

Individuals who hold the highest-level management positions in an organization, responsible for strategic decision-making and leadership.