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One Strategic Barrier That May Keep New Firms Out of a Market

Question 74

Multiple Choice

One strategic barrier that may keep new firms out of a market is


A) producing where marginal cost equals marginal revenue
B) a low minimum efficient scale
C) bounded markup pricing
D) efficiency wages,which may make it impossible for new entrants to compete profitably
E) excess capacity,which may serve as a signal to new entrants to stay away

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