Potential entrants are more likely to be deterred from actually entering an industry whena. incumbent firms have previously been aggressive in defending their market positions against entry. b. incumbent firms are complacent. c. buyers are not particularly price sensitive and the industry already contains a dozen or more rivals. d. the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage. e. buyer switching costs are moderately low because of strong product differentiation among incumbent firms.

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.