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Refer to Scenario 13.16. If Gooi can move first, and Ici wants to realize the ($150, $300) payoff, ...

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Refer to Scenario 13.16. If Gooi can move first, and Ici wants to realize the ($150, $300) payoff, ...

Refer to Scenario 13.16. If Gooi can move first, and Ici wants to realize the ($150, $300) payoff,
A) all it has to do is threaten to buy yogurt machines, no matter what Gooi does.
B) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $50.
C) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $150.
D) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than $300.
E) it has to move before Gooi; there is no other way.

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Microeconomics

Edition: 8^th

Author: Pindyck

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