Blockaded entry occurs when the incumbent firm is able to deter entry by simply pursuing a policy that is best for

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Blockaded entry occurs when the incumbent firm is able to use its dominant position to deter entry by potential competitors. The incumbent firm pursues a policy that is best for itself as a monopolist, not for potential entrants or for social welfare. Therefore, the best choice is A.

Blockaded Entry Occurs When the Incumbent Firm Is Able to Deter