Contestable Markets Flashcards
0
Q
Predatory or destroyer pricing
A
Situation where firms hold price below Av cost for a period to try and force competitions or prevent new firms from entering the market
1
Q
Entry limit pricing
A
Situation where a firm will keep prices lower than they could be in order to deter new entrants
2
Q
Competitive advantage
A
The advantages firms can gain over another which have the characteristics of being both distinctive and defensible
3
Q
Cream-skimming
A
Situation where a firm identifies parts of a market that are high in value added and seeks to exploit those markets
