Which of the following does not function as a barrier to entry into an oligopoly market?
A)Patents.
B)The expense involved in nonprice competition.
C)Control of distribution outlets.
D)Predatory pricing.

Question

Quizplus · Accepted Answer

Predatory pricing is a strategy employed by established firms to drive out new entrants by setting prices so low that new firms cannot compete. This actually reduces the barriers to entry because it can make it easier for new firms to enter the market once the established firm has driven itself out of business or left the market. Therefore, predatory pricing does not function as a barrier to entry into an oligopoly market.

Which of the Following Does Not Function as a Barrier