Scenario 13.17 Consider the Entry-Deterrence Game Below. the Potential Entrant Would Have

question 99

Multiple Choice

Scenario 13.17
Consider the entry-deterrence game below. The potential entrant would have to spend some amount in sunk costs to enter the market.
-In the game in Scenario 13.17, Incumbent Monopoly has:

• A) an incentive to threaten accommodation, which would be credible.
• B) an incentive to threaten war, which would be credible.
• C) an incentive to threaten accommodation, which wouldn't be credible.
• D) an incentive to threaten war, which wouldn't be credible.
• E) no incentive to make a threat.