Incumbent firms (i.e., established firms) can present a credible threat of aggressive price cutting, and threaten other actions to discourage entry into their industry. Such threats create

Incumbent firms (i.e., established firms) can present a credible threat of aggressive price cutting, and threaten other actions to discourage entry into their industry. Such threats create




a) Behavioral barriers to entry
b) Monopoly short-term rents
c) Structural barriers to entry
d) Perceived high costs of entry.




ANS A


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