To deter a potential entrant, an existing firm in a market may ...

[frankwu]

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.
 
  The firm can make this threat credible by limiting its own options, and possible actions of this type include: A) signing long-term sales contracts that commit the firm to high levels of output.
  B) building a very large factory that could potentially produce enough output to meet most of the market demand.
  C) signing long-term purchase contracts for large amounts of production inputs.
  D) all of the above

Question 2

The purchasing power (real value) of the federal minimum wage in March 1990 was the same as it was in 1981.
 
  Indicate whether the statement is true or false

[HandsomeMarc]

Answer to Question 1

D

Answer to Question 2

F