The Likelihood of New Entrants Joining an Industry Is Low

question 38

Multiple Choice

The likelihood of new entrants joining an industry is low if capital requirements to enter the industry are high because:

• A) new entrants struggle to match incumbents' prices.
• B) this discourages customers from buying a new entrant's offerings.
• C) new entrants struggle to gather enough cash to get started.
• D) each incumbent has a group of loyal customers that enjoy its unique features.
• E) new entrants struggle to get their offerings to customers.

Describe the distribution of national income between labor and capitalists and understand the historical changes in this distribution.

Explain the rationale behind compensating an entrepreneur with profit.

Understand the impact of right-to-work laws on union setups and worker organization.

Comprehend the factors leading to noncompeting groups of workers and the effects of geographic immobility.

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Definitions:

Videotape

A magnetic tape used for storing visual and audio information, historically used before digital recording became mainstream.

Proactive Interference

A phenomenon where older memories hinder the recall of newer memories.

Retroactive Interference

A cognitive event where recent information hampers the retrieval of older information that was learned earlier.

Encoding Specificity

The principle that the recall of information is improved when the contexts present at encoding and retrieval are similar.