Answers
Question—1
Gain entrance into a market with high barriers to entry
The deep discounting and limit pricing are the strategies of the firm to prevent new firm to entry into the market. Here the firm sets a price below the average variable cost of its competitors.
Question—2
A high score indicates an oligopolistic market structures
The HHI indicates market concentration. It is measured by using the square of the market share of each firm in the market.
Question—3
Where buyer power is too great
Question—4
Natural monopolies
The natural monopoly existed in the market because of the higher start-up cost.
Question—5
You will likely look to run independent films or otherwise avoid directly competing with theatre chains
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