Question

Question 5 1 pts High barriers to entry are a mark of sustainable value Limit options for suppliers Are a non-sequential strategy Provide greater access to working capital. Question 6 Which of the following is used to prevent adverse selection? Drug testing by an employer Final grades submitted to the registrar Amenu with pictures of the item Weighing in at your doctor

Answer 1

5.

Ans: are a mark of sustainable value.

Explanation:

Due to presence of high barriers to entry in an industry, firm already existing in the industry keeps enjoying sustainable value as there is no fear of emergence of rival and competition which reduces value.

6.

Ans: Drug testing by employer.

Explanation: This is an example to extracting more information about employee to be able to make informed decision of hiring. This helps in solving problem of adverse selection.

If you are satisfied with the answer, please provide a positive rating. Feel free to comment in case of queries.

Have a nice day ahead!