Given the following payoff matrix: a. Indicate the best strategy for each firm. b. Why is the entry deterrent threat by Firm A to lower
Given the following payoff matrix: a. Indicate the best strategy for each firm. b. Why is the entry deterrent threat by Firm A to lower price not credible to Firm B? c. What could firm A do make its threat credible without building excess capacity? Firm B Enter Don't Enter Firm A Low Price 3,-1 3,1 High Price 4,5 6,3
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