In excess capacity model, the monopolist invests in exc...
单项选择题In excess capacity model, the monopolist invests in excess capacity in period 1 in order to ( ) its costs in period 2; this investment lowers the monopolist's costs in relation to a potential entrant's costs in period 2. So the monopolist ( ) entry and earns larger profits over the two periods.
A.
lower, deters
B.
lower, encourages
C.
increase, deters
D.
increase, encourages
