In Discussions of Barriers to Entry, What Is Meant by the Term

question 136

Multiple Choice

In discussions of barriers to entry, what is meant by the term "virtuous cycle"?

• A)A virtuous cycle refers to successful research and development that leads to information that is used to develop other new products.
• B)A virtuous cycle refers to a firm using the profits from a monopoly in one market to establish a monopoly in another market.
• C)A virtuous cycle refers to the situation where the pursuit of self-interest in establishing an entry barrier leads to an increase in social welfare (the "invisible hand").
• D)A virtuous cycle refers to a situation where if a firm can attract enough customers initially, it can attract additional customers because its product's value has been increased by other customers using it, which attracts even more customers.

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Definitions:

Control

In experiments, the group or condition that does not receive the treatment and is used as a benchmark to measure how the other tested groups compare.

Nightmares

Disturbing dreams that cause the dreamer to wake feeling anxious, afraid, or distressed.

Flashbacks

Sudden, intense, and vivid recollections of past experiences, often traumatic, that intrude into the present.

Intrusive Memories

Unwanted and often distressing memories that suddenly enter consciousness, frequently associated with traumatic events and a symptom of PTSD (Post-Traumatic Stress Disorder).