Chapter 9, Problem 6AA

To determine

To find: The Correct word that completes the given sentence.

Answer to Problem 6AA

The correct word that completes the sentence is initial.

Explanation of Solution

When the initial costs of investment are small; New sellers have easier entry into a market. Huge initial capital costs are one of the major barriers for the small companies to enter the market. The initial investment should be kept low to allow the small firms to easily access the market. This helps in encouraging new and fresh innovation in the market.

Economics Concept Introduction

Introduction: Competition refers to the rivalry between market forces which can be companies, firms or even small sized local stores. The competition is usually between the market forces selling similar or identical goods or services