Firm A produces soccer equipment and softball/baseball equipment, as does Firm B. Firm A discontinued its softball/baseball line to focus entirely on its soccer line. This move is known as a:

Question

Quizplus · Accepted Answer

This move is known as a gambit because Firm A is taking a risk by discontinuing their profitable softball/baseball line to focus solely on soccer equipment.

Firm a Produces Soccer Equipment and Softball/baseball Equipment, as Does