Which of the following is an example of strategic behavior?
A) A firm builds excess capacity to discourage the entry of competitors.
B) A firm adopts the pricing behavior of a dominant firm under the assumption that other firms will do likewise.
C) Firms in an industry increase advertising expenditures to avoid losing market share.
D) All of the above are examples of strategic behavior.

Question

Quizplus · Accepted Answer

Strategic behavior involves actions taken by firms to influence the market environment or the behavior of competitors. All the options listed involve firms taking actions to influence competitors or market conditions, thus they are all examples of strategic behavior.

Which of the Following Is an Example of Strategic Behavior