S E44: Entry, Exit and Long-Run Profitability - How to get ahead in the Market
Think Like An Economist
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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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