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.
-Given that Mattie could convincingly threatens to always fight,what would be Irene's best response
A)Enter
B)Not Enter
C)Run
D)Hide

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.​
-​Given that Mattie could convincingly threatens to always fight,what would be Irene's best response
A)​Enter
B)Not Enter
C)Run
D)​Hide

Quizplus · Accepted Answer

If Mattie's can convincingly threaten to always fight and cause a loss for both parties, it would not be profitable for Irene's Dairy to enter the market. Irene's Dairy should not enter and explore other profitable opportunities.

Use the Following Case from Question