What happens if the U.S. textile industry has high barriers to entry? The textile industry’s amount of new firms eventually causes prices to drop. The textile industry’s surviving companies earn a normal level of profit over the long run. The textile industry creates blocked avenues to entry even with companies earning top profits. The textile industry’s high profits will attract new firms to enter.
What happens if the U.S. textile industry has high barriers to entry? The textile industry’s amount of new firms eventually causes prices to drop. The textile industry’s surviving companies earn a normal level of profit over the long run. The textile industry creates blocked avenues to entry even with companies earning top profits. The textile industry’s high profits will attract new firms to enter.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter10: Strategy: The Quest To Keep Profit From Eroding
Section: Chapter Questions
Problem 3MC
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Question
What happens if the U.S. textile industry has high barriers to entry?
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The textile industry’s amount of new firms eventually causes prices to drop.
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The textile industry’s surviving companies earn a normal level of profit over the long run.
-
The textile industry creates blocked avenues to entry even with companies earning top profits.
-
The textile industry’s high profits will attract new firms to enter.
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