Entry Barriers

question 270

Multiple Choice

Entry barriers:

• A)exist in all market structures.
• B)exist in perfect competition and monopolistically competitive markets.
• C)do not exist in any market structures;otherwise nothing would be produced.
• D)exist in monopoly and oligopoly markets.

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Definitions:

Discount Amortization

The process of gradually writing off the initial discount on a bond or loan over the life of the instrument, affecting the issuer's interest expense.

Effective Yield

The return on an investment, expressed as a percentage, accounting for the effects of compounding over a specified period.

Effective Interest Method

A method of calculating the interest revenue for an investment where the interest rate is compounded with each period.

Present Value

The present monetary value of a future sum or a series of cash payments, considering a designated rate of return.