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In: Economics

1. Barriers to entry enhance the market power of many business organizations because they make it...

1. Barriers to entry enhance the market power of many business organizations because they make it difficult for would-be competing firms to enter into an established market. Describe each of the government barriers to entry set forth below:

     a. Patents

     b. Regulations

     c. Business Taxes


1A. What are some basic economic pros and cons of government regulation?



2. With your MBA in hand from Indiana Tech University and a few years of experience under your belt, you have recently been hired to serve as the business manager of a fairly large company. The company faces very tough competition from one primary competitor, and so you are tasked with recommending a strategy to try to eliminate this competitor. Reviewing your coursework in MBA 5120, your options come down to either limit pricing or predatory pricing. Which pricing method will you recommend, and explain why?

(Select only one pricing strategy; not both strategies or combinations of both strategies.)  

A. Is the pricing method you chose guaranteed to work? Explain why or why not.

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Expert Solution

Rahul Sunny answered 2 years ago
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