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What Is the Most Likely Reason a Firm Would Pursue

Question 12

Multiple Choice

What is the most likely reason a firm would pursue the "mad-dog" commitment strategy of making a tough commitment when tactical variables are strategic complements,a strategy with harmful strategic effects?


A) For deterrence of new entrants by creating capacity competition
B) To exploit intangible weaknesses of other firms
C) To test the response of other market firms
D) For deterrence of new entrants by increasing price competition
E) They are following another firm

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