an incumbent usually charges a higher price than a new entrant does. which of the following is a plausible reason for this observation? multiple choice all of the statements associated with this question are correct. the incumbent is ignorant of the new entrant, hence it is still charging the old high price. consumers are risk averse, hence new firms charge lower prices to attract customers. an incumbent usually has a bigger bureaucratic body than a new entrant does and hence has a higher marginal cost.

An incumbent usually charges a higher price than a new entrant does. A plausible reason for this observation is consumers are risk averse, hence new firms charge lower prices to attract customers.

What is observation?

The term observation refers to observe the problem and the research to the samples and the proper in the study. The observation are to observe the data and the issue are the main focuses to the solution.

According to the observation, was the main reason is the incumbent typically charges a higher price. The concept is the causes of the goodwill in the market. The startup and the new firms are the charge in the lower prices on the attract to the consumer.

As a result, the attract of the consumer on the strategies is the lower prices. Therefore, option (b) is correct.

Learn more about on observation, here:

https://brainly.com/question/28041973

#SPJ1