To Deter a Potential Entrant, an Existing Firm in a Market

question 135

Multiple Choice

To deter a potential entrant, an existing firm in a market may threaten to sharply increase production so that the entrant will be left with a small share of the market. This may be a credible threat if:

• A) production exhibits economies of scale.
• B) production exhibits diseconomies of scale.
• C) production costs may fall due to learning-by-doing.
• D) A and C are correct.
• E) B and C are correct.

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Definitions:

Gender Differences

Variations in characteristics, behaviors, and roles traditionally associated with being male or female.

Education Organizations

Institutions or entities involved in providing educational services, whether formal or informal, like schools, colleges, and universities.

Role Congruity Theory

Prejudice against female leaders is the result of an incongruity between the perceived characteristics of women and the perceived requirements of leadership roles.

Leader Categorization Theory

A leadership theory suggesting that people have preconceived notions of what makes a good leader and assess leadership ability by how well someone fits these molds.