Which of the Following Is Not a Condition Under Which

question 2

Multiple Choice

Which of the following is not a condition under which an incumbent firm can successfully deter entry by holding excess capacity?

• A)The investment in excess capacity must be sunk prior to entry
• B)The incumbent should have a sustainable cost advantage
• C)Market demand growth should be slow
• D)The potential entrant should not itself be attempting to establish a reputation for toughness
• E)The excess capacity investment must be recoverable prior to entry

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Definitions:

Mosses

Small, non-vascular plant species that typically grow in dense green clumps or mats, often in damp or shady locations.

Hepaticophyta

A division of non-vascular plants known as liverworts, which are similar to mosses and typically found in moist habitats.

Bryophyta

A division of non-vascular plants that includes mosses, liverworts, and hornworts, characterized by a dominant gametophyte stage.

Anthocerophyta

A division of non-vascular plants known as hornworts, characterized by a sporophyte that looks like a small horn growing from the gametophyte.