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S E44: Entry, Exit and Long-Run Profitability - How to get ahead in the Market
Think Like An Economist
How to Deter New Firms From Entering the Market
Sometimes companies will really threaten to crush new rivals. And this can scare a new firm off from even trying to enter yet. Having deep pockets also shows that a business is willing to fight a rival. Apple has around 200, forty billion dollars cash on hand. Business experts see this as a way of telling potential rivals that it can survive a long and costly fight for its share of the market.
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