Identify and Briefly Explain Any Three Factors That Weaken the Competitive

question 105

Essay

Identify and briefly explain any three factors that weaken the competitive pressures stemming from the threat that new firms will enter the industry.

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Definitions:

Hedge

An investment made to reduce the risk of adverse price movements in an asset, often involving derivatives like futures and options contracts.

Futures Market

A financial exchange where people can trade standardized futures contracts; that is, contracts to buy or sell assets at a future date at a price specified today.

Crop Revenue Insurance

A type of insurance policy that protects farmers against losses due to low crop prices or poor yields, ensuring a minimum level of revenue from their crops.

Countercyclical Payments

Government payments to individuals or businesses that are designed to counteract the effects of an economic downturn.