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Consider the theory of entry-of-buyout that we covered in the lecture. Which of the following statements are correct? (can be multiple correct answers)
a. The difference of the incumbent's profits with and without the entry is the maximum price the incument is willing to pay for the acqusition.
b. The theory of entry-for-buyout is mostly concenred with the post-acquisition incentive of innovation.
c. The preassumption of the theory is that start-ups do not have enough incentive to innovate without the propspect of being acquired.
d. Anticipating the possibility of being bought, a start-up always has enough incentive to innovate in order to enter the incumbent's market.