If the game in Scenario 13.17 were to be infinitely repeated, waging a price war might be a rational strategy

A) because there would be no short-term losses.
B) because the short-term losses might be outweighed by long-term gains from preventing entry.
C) if the potential entrant were irrational.
D) if the monopolist had excess capacity.
E) if there were no sunk costs to the potential entrant.


B

Economics

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