A firm that is threatened by the potential entry of competitors into a market builds excess production capacity. This is an example of?

My answer is an option (C)

The answer is : Option ( C ) 

Option " C" Is My Answer  .....

C is the best _____________________________________

c. a credible threat

-----------------------------

3rd option....Option C.......

c. a credible threat.. ...........................................................................

1. The correct answer was: c. a credible threat..