1. An incumbent's threat to retaliate after a potential competitor enters the market will be takenseriously by potential competitors if (a) the

1. An incumbent’s threat to retaliate after a potential competitor enters the market will be takenseriously by potential competitors if

(a) the incumbent can still earn a profit after carrying out the threat.

(b) the incumbent earns greater profit carrying out the threat than by accommodating entry.

(c) the potential entrant cannot earn a profit if the threat is carried out.

(d) the potential entrant’s profit exceeds the incumbent’s if the threat is carried out