An incumbent's threat to retaliate after a potential competitor enters the market will be taken seriously by potential competitors if
A) the incumbent can still earn a profit after carrying out the threat.
B) the incumbent earns greater profit carrying out the threat than by accommodating entry.
C) the potential entrant cannot earn a profit if the threat is carried out.
D) the potential entrant's profit exceeds the incumbent's if the threat is carried out.
B
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A monopolistically competitive firm that earns economic profits in the short run will be able to expand its market share even if the market size remains constant
Indicate whether the statement is true or false
In the Keynesian theory of money demand,
a. the velocity of money is constant. b. the marginal propensity to hold money is constant. c. money is held in part because it is an asset. d. interest rates are fixed. e. none of the above.