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You are the manager of a cellular phone store with strong market power in Ontario, Canada. The owner has asked that you utilize one of the following pricing strategies to eliminate the competition: Limit Pricing, Predatory Pricing or Raising Rivals Costs.
Question a) Name which strategy you picked. Define what it is in the context of this course.
Question b) How exactly will this strategy deter your competitors?
Question c) Explain exactly how you would implement this strategy for the business. You need to give a real-world example of a tactic and explain how it would effectively achieve the goal of the strategy as you defined it in question a).
Question d) Give an example of a counter-strategy that your competitor could deploy and explain how this would reduce the effectiveness of your strategy?
Question e) Name and explain two differences between Limit Pricing and Predatory Pricing.
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