When a seller uses a demand-side strategy to create barriers to entry, the seller is trying to:
A)increase market demand so that there are extra customers for the new entrants.
B)ensure that new entrants face higher cost curves.
C)encourage the government to use regulations to discourage new entrants.
D)prevent new entrants from attracting any of the seller's customers.

Question

Quizplus · Accepted Answer

A demand-side strategy to create barriers to entry involves making it difficult for new entrants to attract the existing customers of the seller, thereby protecting the seller's market share.

When a Seller Uses a Demand-Side Strategy to Create Barriers