-The above figure shows the payoff matrix facing an incumbent firm and a potential entrant.If the fixed cost of entry were to increase,which of the following would occur?
A) The incumbent chooses the Cournot level of output.
B) The incumbent shuts down.
C) The entry-deterring level of output rises.
D) The entry-deterring level of output falls.

Question

-The above figure shows the payoff matrix facing an incumbent firm and a potential entrant.If the fixed cost of entry were to increase,which of the following would occur?
A) The incumbent chooses the Cournot level of output. 
B) The incumbent shuts down. 
C) The entry-deterring level of output rises. 
D) The entry-deterring level of output falls.

Quizplus · Accepted Answer

The Answer of 
-The above figure shows the payoff matrix facing an incumbent firm and a potential entrant.If the fixed cost of entry were to increase,which of the following would occur?
A) The incumbent chooses the Cournot level of output. 
B) The incumbent shuts down. 
C) The entry-deterring level of output rises. 
D) The entry-deterring level of output falls.

-The Above Figure Shows the Payoff Matrix Facing an Incumbent