In Deciding Whether to Invest in Excess Capacity in Order

Multiple Choice

In deciding whether to invest in excess capacity in order to deter entry,incumbents should consider all of the following except

A) the order of play in pricing and capacity choice decisions
B) the customer sorting pattern
C) the sunk cost required to achieve excess capacity
D) the joint-profit-maximizing cartel output
E) the potential entrant's projected profitability