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Q1. Assume that an incumbent sets quantities. Using the diagram, outline a case when it is not profitable for the incumbent to deter entry. Q2.

Q1. Assume that an incumbent sets quantities. Using the diagram, outline a case when it is not profitable for the incumbent to deter entry.

Q2. "The advertising intensity increases as concentration decrease". Assess this statement.

Q3. With a free market, is there excessive entry or too little entry into the market?

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