Product Differentiation by Incumbents Act as an Entry Barrier Because

question 49

Multiple Choice

Product differentiation by incumbents act as an entry barrier because __________.

• A) new entrants cannot differentiate their products
• B) incumbents will take legal action if new entrants do not differentiate their products
• C) new entrants will have to spend heavily to overcome existing customer loyalties
• D) it helps a firm to derive greater economies of scale

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