Use the following case from question
Irene's Dairy is deciding whether or not to enter the market for ice cream,currently monopolized by Mattie's Ice-cream.If it enters the market,Mattie's can either accommodate him and share his 10million in profits equally with Irene or fight him and cause a 5million loss for each in a price war.
-If Mattie wants to discourage Irene from entering the market,what strategy should she follow?
A)Threaten to always accommodate
B)Always accommodate
C)Threaten to always fight
D)All of the above

Question

Use the following case from question
Irene's Dairy is deciding whether or not to enter the market for ice cream,currently monopolized by Mattie's Ice-cream.If it enters the market,Mattie's can either accommodate him and share his 10million in profits equally with Irene or fight him and cause a 5million loss for each in a price war.​
-​If Mattie wants to discourage Irene from entering the market,what strategy should she follow?
A)​Threaten to always accommodate
B)Always accommodate
C)Threaten to always fight
D)​All of the above

Quizplus · Accepted Answer

If Mattie threatens to always fight, Irene will be discouraged from entering the market as both will incur a 5 million loss. Accommodating or threatening to accommodate Irene will make it easier for Irene to enter the market, which Mattie should try to prevent. Therefore, the best choice for Mattie is to threaten to always fight.

Use the Following Case from Question