Refer to Figure 14-2. If the government delays Gigacom's entry and Xenophone moves first, is a threat by Gigacom that it will provide DSL service if Xenophone provides cable service a credible threat?
A) No, because Gigacom will lose $4.5 million in profits if it carries out its threat.
B) Yes, Xenophone stands to lose $3 million in profit.
C) Yes, because Gigacom's DSL service will drive Xenophone out of business.
D) No, because as a second mover, it has no choice but to abide by the choices of the first mover.
A
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