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Advertising by Existing Firms in an Oligopolistic Industry

Question 116

Multiple Choice

Advertising by existing firms in an oligopolistic industry


A) will increase the expected market share of new entrants to the industry.
B) can be an effective entry barrier to potential entrants to the industry.
C) only exists where natural entry barriers are weak.
D) allows easy entry to a new entrant with small sales.
E) maximizes joint profits for firms in the industry.

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