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Title: To deter a potential entrant, an existing firm in a market may threaten to sharply increase ... Post by: nakungth on Oct 25, 2017 To deter a potential entrant, an existing firm in a market may threaten to sharply increase production so that the entrant will be left with a small share of the market. This may be a credible threat if:
A) production exhibits economies of scale. B) production exhibits diseconomies of scale. C) production costs may fall due to learning-by-doing. D) A and C are correct. E) B and C are correct. Title: Re: To deter a potential entrant, an existing firm in a market may threaten to sharply increase ... Post by: oracledarren on Oct 25, 2017 Content hidden
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