When Existing Firms Lose Customers and Profits Due to Entry

question 81

Multiple Choice

When existing firms lose customers and profits due to entry of a new competitor, a

• A)predatory-pricing externality occurs.
• B)consumption externality occurs.
• C)business-stealing externality occurs.
• D)product-variety externality occurs.

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Definitions:

Ethical Behavior

Conduct that is consistent with agreed principles of moral and ethical standards, often involving honesty, integrity, fairness, and respect for others.

Social Norms

Unwritten rules or expectations for behavior within a social group, which shape individuals' actions and interactions.

Morally Justifiable

Actions or decisions that can be defended as right or acceptable according to ethical principles.

Unethical Purposes

The use of actions or strategies intended to promote personal or organizational gain through means that violate moral or professional principles.