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