For Multipoint Competition to Lead to Mutual Forbearance

question 6

Multiple Choice

For multipoint competition to lead to mutual forbearance,

• A) the threat of retaliation must be substantial and the firms pursuing this strategy must have strong linkages among their diversified businesses.
• B) the threat of retaliation must be low and the firms pursuing this strategy must have strong linkages among their diversified businesses.
• C) the threat of retaliation must be low and the firms pursuing this strategy must have weak linkages among their diversified businesses.
• D) the threat of retaliation must be substantial and the firms pursuing this strategy must have weak linkages among their diversified businesses.

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