How will high entry barriers into a market influence a. The long-run profitability of the firms, b.
Question:
How will high entry barriers into a market influence
a. The long-run profitability of the firms,
b. The cost efficiency of the firms in the industry,
c. The likelihood that some inefficient (high-cost) firms will survive,
d. The incentive of entrepreneurs to develop substitutes for the product supplied by the firms? Are competitive pressures present in markets with high barriers to entry? Discuss.
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a The longrun profitability of the firms High entry barriers can lead to higher longrun profitability for firms in an industry This is because high en...View the full answer
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Related Book For
Economics Private And Public Choice
ISBN: 9780357133996
17th Edition
Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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