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anthonydel117 anthonydel117
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5 years ago
In discussions of barriers to entry, what is meant by the term "virtuous cycle"?

• A virtuous cycle refers to successful research and development that leads to information that is used to develop other new products.

• A virtuous cycle refers to a firm using the profits from a monopoly in one market to establish a monopoly in another market.

• A virtuous cycle refers to the situation where the pursuit of self-interest in establishing an entry barrier leads to an increase in social welfare (the "invisible hand").

• A virtuous cycle refers to a situation where if a firm can attract enough customers initially, it can attract additional customers because its product's value has been increased by other customers using it, which attracts even more customers.
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Microeconomics

Microeconomics


Edition: 7th
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jzhu11jzhu11
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anthonydel117 Author
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5 years ago
Thanks for your help!!
oscar520000
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
smi3
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2 hours ago
Thanks
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