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Product Differentiation by Incumbents Act as an Entry Barrier Because

Question 22

Multiple Choice

Product differentiation by incumbents act as an entry barrier because


A) new entrants cannot differentiate their products.
B) incumbents will take legal action if new entrants do not differentiate their products.
C) it helps a firm to derive greater economies of scale.
D) new entrants will have to spend heavily to overcome existing customer loyalties.

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