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nakungth nakungth
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6 years ago
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.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
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oracledarrenoracledarren
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6 years ago
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