What Characteristic of a Competitive Market Has Made the 'Long

question 199

Multiple Choice

What characteristic of a competitive market has made the 'long run pretty short' in the market for iPhone applications?

• A)Few firms in the market
• B)Identical products
• C)Ease of entry
• D)Blocked entry

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Definitions:

Preemptive Right

The right granted to existing shareholders to purchase additional shares before the company offers them to the public, to maintain their proportional ownership.

Stock-split Right

The entitlement of a shareholder to receive additional shares when a company decides to divide its existing shares into multiple ones to boost liquidity.