Some economists have argued that leagues expand strategically to prevent the formation of rival leagues, but expansion of any business enterprise occurs in response to new (profitable) opportunities. How can we tell the difference between strategic expansion to prevent entry and profit maximizing expansion?

Answer rating: 100% (QA)

Differentiating between strategic expansion to prevent entry and profitmaximizing expansion requires a thorough analysis of the specific context and motivations of the business While it can be challen... View the full answer