FIN 351 CHAPTER 6 QUIZ 36 TO 40

FIN  351 CHAPTER 6 QUIZ 36 TO 40

36. When monopolies exist, they are almost always found in mature industries

37. Ascertaining the competitive structure of an industry can help the analyst to determine the long-term profitability and outlook for that industry.

38. The lack of barriers to entry tends to help established firms by giving them power to increase prices and profits.

39. Firms in industries with low barriers to entry are limited in their ability to raise prices.

40. Firms are most able to raise prices on products for which many substitute goods exist.

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