--%>

New entrance in limit pricing model of strategic behaviour

Within the limit pricing model of strategic behavior, there the demand curve facing a new entrant will be: (w) horizontal. (x) the difference between industry demand and incumbent sales at each price. (y) the difference between the new entrant's output capacity and incumbent sales at each price. (z) zero.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Help The problem of asymmetric

    The problem of asymmetric information is that: a) neither health care buyers nor providers are well-informed. b) health care providers are well-informed, but buyers are not. c) the outcomes of many complex medical procedures cannot be predicted. d) insurance companies are well-informed

  • Q : Influence of discount on Income Effect

    Jay saved $200 to purchase a Zowie digital camera following her friend showed Jay the Zowie she purchased for $200 at a close by camera store. Fortunately the camera was on sale for $150 all through a one-hour ‘Manager’s Special’ sale when Jay ultima

  • Q : Official unemployement Provide the

    Provide the solution of this question. To be officially unemployed a person must: A) be in the labor force. B) be 21 years of age or older. C) have just lost a job. D) be waiting to be called back from a layoff.

  • Q : Income rate variation in Loren curve

    When you were unconcerned about the welfare of other people and your income rated you onto the top two percent of the population, then you would be happiest while the Lorenz curve for your country resembled as: (1) li

  • Q : Maximize profit by all levels of output

    A monopolist which can’t price discriminate and for that variable cost is zero for all levels of output will maximize profit where is: (w) the price is the maximum any buyer is willing to pay. (x) output exhausts productive capacity. (y) marginal cost = total re

  • Q : Profit Maximization problem Can someone

    Can someone help me in finding out the right answer from the given options. The Firms adjust their inputs of the labor or other resources till: (1) Revenue is maximized. (2) Employment is maximized. (3) Marginal product of the labor is maximized. (4) Gain is maximized

  • Q : Problem on marginal resource cost Can

    Can someone help me in finding out the right answer from the given options. Despite of the market structures, the firms maximize gain by hiring labor where the: (i) Marginal revenue product = marginal resource cost. (ii) Marginal r

  • Q : Excess demand in macro economics What

    What is meant by Excess demand in macro economics: In macro economics, if aggregate demand is greater than aggregate supply at full employment level, then there is excess demand.

  • Q : Least probable resource for supply curve

    The resource least probable to conform to the supply curve demonstrated in this figure would be: (w) land. (x) capital. (y) labor. (z) entrepreneurship.

    Q : Example of bilateral monopoly The most

    The most excellent example of bilateral monopoly from the given list would be the condition of negotiations among: (i) U.S. Immigration Service and undocumented workers from Mexico. (ii) Fast food franchises and workers who are high-school dropouts. (