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What is the primary reason firms can earn abnormal profits over long periods of time?
According to Bain's definition, what is a barrier to entry?
What is the assumption of the Sylos postulate?
What is a consequence of limit pricing in Modigliani's model?
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What type of barrier to entry involves incumbent firms having highly differentiated products and an established brand image?
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What is the name of the model that explains how firms can use prices to prevent free entry?
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What is an assumption of Modigliani's model?
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What is the purpose of investment as a signal of commitment, according to Dixit's Model?
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Why does the incumbent firm have a cost advantage in Modigliani's model?
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What is the term for the process by which incumbent firms use their market power to maintain abnormal profits?
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What is the shape of the Long-Run Average Cost (LRAC) curve in Modigliani's model?
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What happens to the entrant's profits if Q > Qc in Modigliani's model?
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What is the condition under which the incumbent can deter entry in the Dixit model?
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What is the effect of the incumbent's investment in the Dixit model?
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What is the role of reputation in the Dixit model?
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What is the outcome of the game if the incumbent's threat to fight a price war is credible?
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What is the condition under which the incumbent can build up a reputation for being tough in the Dixit model?
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What is the application of the Dixit model to the real-world scenario mentioned in the bibliography?
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What is the definition of the limit price according to Bain?
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What is the mathematical formula for the limit price according to Bain?
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What is the assumption about the product in Modigliani's model of limit pricing?
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What is the shape of the Long Run Average Cost curve in Modigliani's model?
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What type of industries often exhibit economies of scale?
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What is the term for the output level at which the average cost is minimized?
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What is the main consequence of imperfect information on the part of the potential entrant?
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According to Bain's definition, what is the primary function of entry barriers?
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What is the primary purpose of limit pricing, according to Modigliani's model?
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How can economies of scale help an incumbent firm?
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What is the role of investment in the Dixit model?
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What is the condition for entry deterrence in the Dixit model?
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