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27 December, 21:17

Which of the following is an example of strategic entry deterrence? Select one: a. price reductions b. building excess capacity

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  1. 27 December, 23:05
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    B is the correct option.

    Explanation:

    It is the action taken by a business in a specific market that discourages the new companies from entering the market. It can include hostile differentiation and heavy spending on product development for product differentiation. When a new entrant in the market incur costs and lose profits it discourages them from entering the market. The barriers created by various companies are considered to be anti-competitive.
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