To deter a potential entrant, an existing firm in a market may threate

To deter a potential entrant, an existing firm in a market may threaten to sharply increase production so that the entrant will be left with a small share of the market.

The firm can make this threat credible by limiting its own options, and possible actions of this type include: A) signing long-term sales contracts that commit the firm to high levels of output.
B) building a very large factory that could potentially produce enough output to meet most of the market demand.
C) signing long-term purchase contracts for large amounts of production inputs.
D) all of the above

ANSWER

D