Question: Capacity expansion is credible to deter entry: a. when used plant capacity is able to be re-sold at a market value b. when used plant

Capacity expansion is credible to deter entry:

a. when used plant capacity is able to be re-sold at a market value

b. when used plant capacity is a sunk cost

c. both when plant capacity is a sunk cost and when it can be re-sold at a market value

d. not when plant capacity is a sunk cost and not when plant capacity is able to be re-sold at a market value

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