Question

The ability to deter entry requires A. a credible threat that if entry occurs the firm is willing to produce more than they would otherwise. B. a clever accounting department. C. a credible threat that if entry occurs the firm will not produce more than they would otherwise. D. a good lawyer.

Answer 1

Answer: A. a credible threat that if entry occurs the firm is willing to produce more than they would otherwise.

Explanation:

Deterring entry simply means the action that are used by firms in order to.pteevwnt other firms of competitors from entering the market or not being able to compete.

Therefore, the ability to deter entry requires a credible threat that if entry occurs the firm is willing to produce more than they would otherwise.