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.

---

Definitions:

Plant Cells

Basic units of life in plants, typically having a cell wall, chloroplasts, and a central vacuole.

Cellulose

Cellulose is an organic compound and a polysaccharide made up of glucose units, forming the primary structural component of plant cell walls and providing rigidity to plants.

Structural Isomers

Molecules that have the same molecular formula but differ in the arrangement of atoms.

Geometric Isomers

Molecules that have the same formula and sequence of bonded atoms, but differ in the three-dimensional orientations of their atoms in space.