This topic contains a solution. Click here to go to the answer
« previous next »
Pages: 1 2  All   Go Down

Author Question: The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. The ... (Read 288 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
on: Jun 18, 2019


The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. The potential entrant cannot earn a profit if the incumbent
◦ deters entry.
◦ chooses the Stackelberg leader level of output.
◦ shuts down.
◦ chooses the Cournot level of output.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by pragya sharda on Jun 18, 2019

Dunkey

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jun 18, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly


Beheh

  • Hero Member
  • *****
  • Posts: 520
Reply #2 on: Jun 18, 2019


The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. Assuming a fixed cost of entry, the incumbent will deter entry because
◦ it is more profitable than accommodating entry.
◦ the incumbent would earn zero profit if it accommodated entry.
◦ it increases consumer surplus.
◦ the potential entrant winds up with zero profit.


IRincones

  • Sr. Member
  • ****
  • Posts: 321
Reply #3 on: Jun 18, 2019
it is more profitable than accommodating entry.


Beheh

  • Hero Member
  • *****
  • Posts: 520
Reply #4 on: Jun 18, 2019
Excellent


IRincones

  • Sr. Member
  • ****
  • Posts: 321
Reply #5 on: Jun 18, 2019
Great! Please up vote :D


shenderson6

  • Hero Member
  • *****
  • Posts: 573
Reply #6 on: Jun 18, 2019


The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. Assuming a fixed cost of entry, the outcome will be that the incumbent
◦ deters entry.
◦ deters entry and earns zero profit.
◦ chooses the Stackelberg leader level of output and the potential entrant enters.
◦ chooses the Stackelberg leader level of output but the potential entrant does not enter anyway.


soda0602

  • Sr. Member
  • ****
  • Posts: 313
Reply #7 on: Jun 18, 2019
deters entry.


mpobi80

  • Hero Member
  • *****
  • Posts: 519
Reply #8 on: Jun 18, 2019


The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. If the fixed cost of entry were to increase, which of the following would occur?
◦ The incumbent shuts down.
◦ The incumbent chooses the Cournot level of output.
◦ The entry-deterring level of output rises.
◦ The entry-deterring level of output falls.


deja

  • Sr. Member
  • ****
  • Posts: 332
Reply #9 on: Jun 18, 2019
The entry-deterring level of output falls.


Pages: 1 2  All   Go Up
« previous next »
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

A nurse shows empathy to a client. A nurse shows empathy to a client.
A cartoon of “King Andrew the First” shows Jackson standing atop the U.S. Constitution—a scepter in A cartoon of “King Andrew the First” shows Jackson standing atop the U.S. Constitution—a scepter in
This image shows the spread of droplets from an uncovered sneeze. This image shows the spread of droplets from an uncovered sneeze.
Move joints in hands. Apply scissoring to metacarpals and figure-8s to fingers. Move joints in hands. Apply scissoring to metacarpals and figure-8s to fingers.
The voltage-gated channel cycles during an action potential The voltage-gated channel cycles during an action potential
Rotating a matrix along the x-axis multiplication Rotating a matrix along the x-axis multiplication
Video: Methods of carbon dioxide transport - carbaminohemoglobin and bicarbonate ions

For a complete list of videos, visit our video library