If incumbent firm Dell threatens potential new entrant Rising Star with the threat, "If you enter this market, we will lower our price and keep it low until you are driven out of the market," then

• Rising Star would never go ahead and enter if Dell has a cost advantage over Rising Star.
• Rising Star's decision to enter will be unaffected by the threat if the threat is not credible.
• Dell is making a strategic move designed to increase its profits at the expense of Rising Star.
• both "Rising Star's decision to enter will be unaffected by the threat if the threat is not credible" and "Dell is making a strategic move designed to increase its profits at the expense of Rising Star".
• All of the choices are correct.