Existing Firms May Seek to Inhibit Potential Entrants By

question 21

Multiple Choice

Existing firms may seek to inhibit potential entrants by:

• A)reacting before entry and positioning after.
• B)reducing fixed costs.
• C)positioning before entry and reacting after.
• D)adopting the Cheerios defense.

---

Definitions:

Patents

Legal documents that grant an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Monopoly Power

The control held by a single entity over the entire market for a product or service, allowing it to significantly influence or set prices.

Lawsuits

Legal actions taken by one party against another for the redress of grievances in a court of law.

Wal-Mart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.