All of the Following Are Sunk Cost Investments That Precommit

question 21

Multiple Choice

All of the following are sunk cost investments that precommit an incumbent to aggressively defend market share and the cash flow prior to threatened entry except

• A) reputational investments in company logos (e.g.,Beatrice)
• B) automobile showrooms
• C) retail displays which hold only L'eggs egg-shaped hosiery packages
• D) neon signage for an independently owned Krispy Kreme store
• E) excess capacity in a declining industry

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