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» Economics » Topics begins with P » Price leader shank


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Price leader shank prevails on a market, if an individual entrepreneur is able the price to determine. The price-stating entrepreneur can use its role for the displacement of competitors, in order to win so their customers. He does this e.g. by ruinous competition, by keeping the customers so long from its competitor away by lower prices, until this no more sufficient profit gained and insolvent becomes. Monopolies are the clearest cases of price leader shank on a market. By the competition between oligopolyistic competitors the customer has an advantage to expand if the competitive enterprises mutually concerning the price undercutting around their market share. In the polypolistischen market price-fixing arrangments take place, it the enterprises make possible to exist next to each other and a profit over the entrepreneur wages to possibly gain in some cases. The office for trust is to guarantee that no trusts, price-fixing arrangments and monopolistic positions to develop.


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