-The Above Figure Shows the Payoff Matrix Facing an Incumbent

question 27

Essay

-The above figure shows the payoff matrix facing an incumbent firm.Assuming a fixed cost of entry,will the incumbent deter entry? Why?

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Definitions:

Strategic Advantage

an edge that an organization gains over its competitors through strategies such as cost leadership, differentiation, or rapid response to market changes.

RAM

Random Access Memory (RAM) is a type of computer memory used to store working data and machine code currently in use. It allows data items to be read or written in almost the same amount of time irrespective of the physical location of data inside the memory.

Binary Form

The form in which data and instructions can be read by the CPU—only 0s and 1s.

CPU

The Central Processing Unit (CPU), often simply referred to as the processor, is the brain of the computer where most calculations take place, rephrased as executing and interpreting instructions from the computer's hardware and software.