An Illustration of a Non-Credible Commitment Is the Promise

question 2

Multiple Choice

An illustration of a non-credible commitment is the promise

• A) to not increase capacity in a declining industry
• B) to match a new entrant's discount price
• C) to enter a profitable industry
• D) to restrain output to the quota assigned by a cartel
• E) to exit in the face of projected losses.

---

Definitions:

Hedge Funds

Investment funds that employ diverse and often complex strategies, including leverage, short selling, and derivatives, aiming at high returns for investors.

Google's Motto

"Don't be evil," which was an informal motto guiding Google's corporate code of conduct, emphasizing the company's ethical business practices.

Don't Be Evil

This was the informal corporate motto of Google, signifying the company's commitment to ethical business practices.

Arab Immigrant

An individual who has relocated from an Arab country to another nation, often for reasons such as seeking employment, education, or safety.