to produce big engines no matter what Race Car Motors Inc. does; suppose, too, that engines producer can easily satisfy the needs of Race Car Motors Inc. If Race Car Motors Inc.believe Far Out Engines Ltd. threat, it would produce big cars. Otherwise, it would have trouble finding engines for its small scars and would earn only 1 million instead of 3 million. But the threat is not credible. Once Race Car Motors Inc. responded by announcing its intentions to produce small cars, Far Out Engines Ltd, would have no incentive to carry out its threat. what Race Car does