Use the following to answer question:
Figure 12.8
-(Figure 12.8) Which of the following is an example of a noncredible threat?
A) O's Groceries tells the Food Palace that it is committed to entering the market.
B) Food Palace tells O's Groceries that it will build a large store whether or not O's Groceries enters the market.
C) Food Palace tells O's Groceries that it will build a small store if O's Groceries enters the market.
D) O's Groceries tells the Food Palace that it will not enter the market.

Question

Use the following to answer question:
Figure 12.8 
-(Figure 12.8) Which of the following is an example of a noncredible threat?
A) O's Groceries tells the Food Palace that it is committed to entering the market. 
B) Food Palace tells O's Groceries that it will build a large store whether or not O's Groceries enters the market. 
C) Food Palace tells O's Groceries that it will build a small store if O's Groceries enters the market. 
D) O's Groceries tells the Food Palace that it will not enter the market.

Quizplus · Accepted Answer

A noncredible threat is one that is not believable or rational for the party to carry out. Building a large store regardless of market entry by O's Groceries may not be a rational decision for Food Palace if it leads to overcapacity or financial loss.

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