h. Suppose that the small firm has no access to credit markets and therefore is unable to

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h. Suppose that the small firm has no access to credit markets and therefore is unable to take on any debt. If the large firm knows this, how will this change the subgame perfect equilibrium?

True or False: Although the small firm will not need to access credit markets to be the last firm in the industry, it will be forced out of the market before the large firm exits if it does not have access to credit markets.

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