Which of the following would be a reason why incumbents may have an absolute cost advantage over entrants? a. Incumbents may have plants in the most desirable locations. O b. Incumbents' output may be greater. O c. Incumbents may be able to offer lower prices than entrants. O d. Entrants face an opportunity cost of using scarce inputs, but incumbents do not.

Aquaculture Science
3rd Edition
ISBN:9781133558347
Author:Parker
Publisher:Parker
Chapter17: Aquaculture Business
Section: Chapter Questions
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Which of the following would be a
reason why incumbents may have
an absolute cost advantage over
entrants?
a. Incumbents may have plants in the most
desirable locations.
O b. Incumbents' output may be greater.
O c.
Incumbents may be able to offer lower prices
than entrants.
O d. Entrants face an opportunity cost of using scarce
inputs, but incumbents do not.
Transcribed Image Text:Which of the following would be a reason why incumbents may have an absolute cost advantage over entrants? a. Incumbents may have plants in the most desirable locations. O b. Incumbents' output may be greater. O c. Incumbents may be able to offer lower prices than entrants. O d. Entrants face an opportunity cost of using scarce inputs, but incumbents do not.
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