6. Consider the entry-deterrence game below. The potential entrant moves first and would have to spend...

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6. Consider the entry-deterrence game below. The potential entrant moves first and would have to spend some amount in sunk costs to enter the market. In this game, the Incumbent Monopoly has a. b. C. d. e. an incentive to threaten high prices, which would be credible. an incentive to threaten low prices, which would be credible. an incentive to threaten high prices, which wouldn't be credible. an incentive to threaten low prices, which wouldn't be credible. no incentive to make a threat. High Prices Incumbent Monopoly Low Prices Entrant Enter Market Stay Out 17,6 60,0 18,-6 24,0 6. Consider the entry-deterrence game below. The potential entrant moves first and would have to spend some amount in sunk costs to enter the market. In this game, the Incumbent Monopoly has a. b. C. d. e. an incentive to threaten high prices, which would be credible. an incentive to threaten low prices, which would be credible. an incentive to threaten high prices, which wouldn't be credible. an incentive to threaten low prices, which wouldn't be credible. no incentive to make a threat. High Prices Incumbent Monopoly Low Prices Entrant Enter Market Stay Out 17,6 60,0 18,-6 24,0

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