An ineffective means of discouraging the entry of new firms by existing firms in an oligopolistic industry is

Question

Quizplus · Accepted Answer

Raising prices may not deter new firms from entering the market, as they may still see an opportunity for profit despite the higher prices. It may also provoke a price war with existing firms, leading to lower prices and less profitability for all firms involved.

A) producing a wide range of brands of their products may actually attract new customers and increase market share.

B) carrying out industrial sabotage is illegal and unethical, and may result in legal repercussions for the firms involved.

C) spending heavily on advertising may attract new customers, but it does not necessarily deter new firms from entering the market.

E) seeking greater patent protection may prevent other firms from producing identical products, but it does not prevent new firms from entering the market with similar products.

An Ineffective Means of Discouraging the Entry of New Firms