An entry barrier that involves illegal pricing strategies is:
A)increasing returns to scale
B)advertising
C)legal obstacles
D)restricted ownership of resources
E)predatory pricing

Question

Quizplus · Accepted Answer

Predatory pricing involves setting prices at an artificially low level in order to drive competitors out of the market. While this strategy is illegal, it can serve as an effective entry barrier for potential new competitors who are unable to match the low prices of the incumbent firms.

An Entry Barrier That Involves Illegal Pricing Strategies Is