Consider the following extensive form of the game. The outcome in the subgame perfect Nash equilibrium of this game is [ Select ] It would not pay for the incumbent to produce the large quantity if its profits from producing large quantity is less than $ [Select ] Enter - (50,50) Rival Small •(100,0) Don't enter Incumbent Large · (60,0)

Microeconomic Theory
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ISBN:9781337517942
Author:NICHOLSON
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Chapter8: Game Theory
Section: Chapter Questions
Problem 8.1P
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Consider the following extensive form of the game. The outcome in the subgame perfect Nash equilibrium of this game is [ Select one option] ["Large; Don't Enter", "Large; Enter", "Small; Don't Enter", "Small; Enter"].

It would not pay for the incumbent to produce the large quantity if its profits from producing large quantity is less than $ [ Select one option ] ["50", "60", "100", "0"].

Consider the following extensive form of the game. The outcome in the
subgame perfect Nash equilibrium of this game is
[ Select ]
It would not pay for the incumbent to produce the large quantity if its profits
from producing large quantity is less than $ [ Select ]
Enter
• (50,50)
Rival
Small
•(100,0)
Don't enter
Incumbent
Large
(60,0)
Transcribed Image Text:Consider the following extensive form of the game. The outcome in the subgame perfect Nash equilibrium of this game is [ Select ] It would not pay for the incumbent to produce the large quantity if its profits from producing large quantity is less than $ [ Select ] Enter • (50,50) Rival Small •(100,0) Don't enter Incumbent Large (60,0)
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