Which of the Following Conditions May Make Predatory Pricing by Incumbents

question 13

Multiple Choice

Which of the following conditions may make predatory pricing by incumbents rational?

• A)When entry costs are very high
• B)When entrants are uncertain about market conditions
• C)When existing firms have significant coast advantages
• D)When entrants are required to obtain extensive licensing and regulatory approvals
• E)When exiting firms have increasing marginal revenue

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