Barriers to Entry Are Used to

question 14

Multiple Choice

Barriers to entry are used to

• A) enable a firm to exercise control over the price of its product.
• B) prevent other firms from entering the market.
• C) allow the firm to earn economic profits.
• D) all of the above

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Definitions:

Price Competition

A type of competition in which companies try to attract customers by offering lower prices than their competitors.

Equilibrium Payoff

In game theory, the reward or outcome each player expects to receive when all players choose strategies that lead to a stable state where no player can benefit by changing their strategy alone.

Advertising Strategy

An advertising strategy is a plan designed to reach and persuade potential customers to buy a product or service or take any action desired by the advertiser.

Nash Equilibrium

A concept in game theory where players reach an outcome from which no player can benefit by unilaterally changing their strategy.