Question
1. Which outcome should NOT ever happen in the context of an incumbent and a potential entrant: a.a high-cost incumbent pretending to be a low-cost
1. Which outcome should NOT ever happen in the context of an incumbent and a potential entrant:
a.a high-cost incumbent pretending to be a low-cost producer
b.a high-cost incumbent acting as if they are a high-cost producer
c.a low-cost incumbent acting as if they are a low-cost producer
d.a low-cost incumbent pretending to be a high-cost producer
2. Capacity expansion is credible to deter entry:
a.not when plant capacity is a sunk cost and not when plant capacity is able to be re-sold at a market value
b.when used plant capacity is a sunk cost
c.when used plant capacity is able to be re-sold at a market value
d.both when plant capacity is a sunk cost and when it can be re-sold at a market value
3. A second-mover advantage exists in a duopoly context:
a.never
b.for a Stackelberg model
c.for sequential price competition with differentiated products
d.for a Cournot model
plz answer correct explain
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