With Regard to Preventing Entry,if Identical Firms Act Simultaneously

question 30

Multiple Choice

With regard to preventing entry,if identical firms act simultaneously,

• A) they cannot credibly threaten each other.
• B) they will all incur losses.
• C) only one firm will enter the market.
• D) none of them will enter the market.

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Definitions:

Assurances

Statements or actions intended to provide confidence or certainty about a condition or result.

Representations

Statements of fact made by one party to another before or at the time of entering into a contract, intended to induce the other party into the contract.

Warranties of Title

Guarantees given by a seller to a buyer that the seller has the right to transfer ownership and no undisclosed liens exist on the property.

Express Warranty

A clearly stated or written guarantee made by a seller about the quality or performance of a product, which becomes part of the contract.