Which of the following statements is true about a soft commitment?
A)It is bad for competitors
B)It is good for competitors
C)In Cournot competition,capacity expansion is an example of a soft commitment
D)In Betrand competition,a commitment to reduce prices is an example of a soft commitment
E)Tough commitments are always in the best interest of a firm

Question

Quizplus · Accepted Answer

A soft commitment is generally beneficial for competitors because it signals a less aggressive stance, allowing competitors to potentially gain market share or maintain higher prices.

Which of the Following Statements Is True About a Soft