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Consider a small, growing community large enough to support a single cement maker but will never be large enough to support two firms. One firm
Consider a small, growing community large enough to support a single cement maker but will never be large enough to support two firms. One firm can decide to enter this market before the community becomes a bustling town. This decision will imply lower discounted lifetime profits because this firm will have to operate in a small market until the point in which the market finally thrives and grows. In this way, this firm guarantees the market profits of the future. This behavior is called
preemptive entry
rentseeking behavior
strategic bundling
lobbying the government
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