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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Incumbents are unaffected by fixed costs of entry while potential entrants are affected by them because
incumbents will act to prevent entry at all costs.
fixed costs will be greater for the potential entrant than for the incumbent.
for potential entrants the cost is avoidable, while for the incumbent, it is not.
fixed costs are zero for the incumbent.
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