A Barrier to Entry

question 24

Multiple Choice

A barrier to entry

• A) makes it illegal for firms to enter the industry.
• B) can be thought of as unrelated to monopoly.
• C) slows or even prevents entry into a market.
• D) usually takes the form of a cartel.

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Definitions:

Value-Weighted Index

An index in which the weight of each constituent is proportional to its market value, emphasizing larger companies.

Price-Weighted Index

A stock market index in which each company's influence on the index's performance is proportional to its stock price.

Bond Price Index

A measure that tracks changes in the prices of a basket of bonds over time, reflecting the overall performance of the bond market.

Equally Weighted Index

A stock market index where each stock has the same weight or importance, regardless of the company's size.