An Incumbent's Threat to Retaliate After a Potential Competitor Enters

question 54

Multiple Choice

An incumbent's threat to retaliate after a potential competitor enters the market will be taken seriously by potential competitors if

• A) the incumbent can still earn a profit after carrying out the threat.
• B) the incumbent earns greater profit carrying out the threat than by accommodating entry.
• C) the potential entrant cannot earn a profit if the threat is carried out.
• D) the potential entrant's profit exceeds the incumbent's if the threat is carried out.

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Definitions:

Overall Happiness

Overall happiness is a comprehensive measure of an individual's subjective well-being and contentment with life, considering various emotional, psychological, and situational factors.

Good Things

Positive or favorable events, outcomes, or aspects of one's life that contribute to their well-being and happiness.

Low Arousal

A state characterized by calmness and a lack of high energy or excitement.

Pleasant Emotion

Feelings that are enjoyable or pleasing, such as happiness, joy, or contentment.