BobTheCoward
Banned
- Joined
- Nov 12, 2010
- Messages
- 22,789
Except the large, brand name company can lower its price low enough and take the hit long enough to drive the competition out, and then jack the price back up again. See Wal-Mart and to a lesser extent, Starbucks.
In short, you're still wrong. But this thread is about Junior. If you need folks to explain business, government, and markets, you should try another thread.
You are absolutely wrong. There is little evidence that firms engage in those activities and are able to maintain barriers to entry that prevents new entrants.