Price-cutting and other competitive strategies in highly concentrated markets can present a significant barrier to entry for new entrants.

Question

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In highly concentrated markets, where a few players have significant market share, price-cutting and other competitive strategies can make it difficult for new entrants to establish themselves and compete effectively. The existing players may have the resources to sustain a price war or may be able to leverage their significant market share to prevent new entrants from gaining a foothold. This can create a significant barrier to entry for new competitors.

Price-Cutting and Other Competitive Strategies in Highly Concentrated Markets Can