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Homework for Chapter 6, Adapted End-of-chapter Questions (10 points possible) Dunne, Roberts, and Samuelson found that industries which have high entry rates, tend to also

Homework for Chapter 6, Adapted End-of-chapter Questions

(10 points possible)

Dunne, Roberts, and Samuelson found that industries which have high entry rates, tend to also have high exit rates.

Can you explain this finding?

What does this imply for pricing strategies of incumbent firms?

"All else equal, a firm would prefer blockaded entry to deterable entry." Explain.

How HEB behaves toward Walmart is a major determinant of whether it will face entry by new competitors. Explain.

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