Why and in what circumstances would an incumbent firm, Strategic Management

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Why and in what circumstances would an incumbent firm

1. Explain why entry deterrence and entry accommodation call for the same strategy when product decisions are strategic substitutes, and for opposing strategies when product decisions are strategic complements. Illustrate with some examples.

2. Why, and in what circumstances, would an incumbent firm facing potential entry find it profitable to expand its production capacity above the level that a monopolist ignoring entry would choose?

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