Strategic Management and Planning for the Agribusiness Codificacin: FAES 561

QUESTION 1 Several research papers found evidence that industries with high entry rates also have high exit rates.

Can you explain these results? What does this imply for the incumbent firm's pricing strategy?

QUESTION 2 "Holding all else constant, an incumbent firm would prefer a blocked entry to an interfered entry.":

(a) Comment.

(b) If true, what implications does the above statement have for strategy design purposes?

QUESTION 3 (a) Under what conditions do economies of scale serve as barriers to entry?

(b) Do the same conditions apply to learning curves?