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Leadership through implied threats to rival

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Reference no: EM133186155

Part 1.

1. Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down?

2. How would a low-cost price leader enforce its leadership through implied threats to a rival? Provide at least one example of such a strategy.

Part 2.

1. Try to remember the billboards on your commute to work or school. How many do you think there are? Explain why you remembered any of them. Next time you are on that route, note how many billboards there actually are. Are they effective?

Reference no: EM133186155

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