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In a decision tree, the difference between a decision node and a terminal node is that A. at a...

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In a decision tree, the difference between a decision node and a terminal node is that

A. at a decision node a decision must be- made, while at a terminal node the final decision must be made.

B. at a decision-node, a decision must be made while a terminal node shows the payoff.

C.at a decision node all participants make the same-decision, while at a terminal node different players may make different decisions.

D.at a decision node all participants are free to make individual decisions but at a terminal node they must agree on a collective decision.

Actions of firms that are aimed at deterring entry include

A.introducing new products to fill market niches.

B.setting lower prices to keep profits at a level that makes entry less attractive.

C.advertising to create product loyalty.

D.All of the above.

Encyclopedia Britannica is an encyclopedia publisher who sells printed encyclopedias. In the 1990s, encyclopedias began to be sold electronically. What effect did electronic encyclopedias have on Encyclopedia 'Britannica' electronic encyclopedias

A.served as a new product that fills a consumer need better than printed encyclopedias did

B.served as a complement, increasing sales of electronic and printed encyclopedias.

C.resulted in the government introducing occupational licensing laws for educational materials.

D.prompted Encyclopedia Britannica to form the first cartel for encyclopedias.

E.used printed encyclopedias from Encyclopedia Britannica as a key input.

Entry Deterrence by Incumbent Firm:

An incumbent firm has a favorable position of being the 'first mover', which means that it can impact an entrant's choice. In economics, strategic entry deterrence refers to any move made by a current business in a specific market that demoralizes potential participants from competing in that industry. Such activities, or hindrances to the passage, can incorporate unfriendly takeovers, differentiation in the product through substantial spending on developing improved products or advertising the existing ones, capacity expansion to accomplish lower unit costs, and predatory pricing behavior. Although numerous barriers to entry are made by incumbents, the timing of entry can likewise act as an exogenous entry barrier, as potential contestants are less inclined to go into a market on if it will require much time to reach the capacity of an occupant, while they incur costs and make losses in the process.

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What Is a Decision Tree? - Examples, Advantages & Role in Management

from Introduction to Management: Help and Review

Chapter 2 / Lesson 12
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