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3. (Topic 8) Which of the following statements is not true about the Dixit model? a. A potential entrant will be unlikely to enter if

3. (Topic 8) Which of the following statements is not true about the Dixit model? a. A potential entrant will be unlikely to enter if they have high fixed costs b. An incumbent firm will most likely accommodate entry if the entrant has low fixed costs c. An incumbent firm will never install capacity beyond the monopoly profit maximising level* d. An entrant firm will never install excess capacity beyond that required for production

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