The strong incentive of sellers to deter the entry of new sellers is a major reason that:
A)average costs are higher than necessary in the long run.
B)product differentiation is rare.
C)deterrence strategies are rarely used.
D)most markets are imperfectly competitive.

Question

Quizplus · Accepted Answer

The strong incentive of sellers to deter the entry of new sellers contributes to imperfect competition in markets. This is because existing sellers will engage in various strategies to maintain their market share and prevent new competitors from entering, leading to a market structure that is not perfectly competitive.

The Strong Incentive of Sellers to Deter the Entry of New