9.9 Consider instead the general model studied in the text: Firm 1 \ Firm 2 date 0 date 1 date 2 date 0 0,0 0, date 1 ,0 -C,-C 0,2 -C, -C date 2 2,0 -C, C -2c,-2c a. In the symmetric mixed-strategy equilibrium of this game, can you tell whether dropping out at date 0 is more likely if costs c increase? Explain your answer. b. How is the probability that exactly one firm drops out at date 0 affected if c increases? What about the probability that at least one firm drops out? c. Does an increase in c make a monopoly more likely? Explain. 169 9.10 a. Redo exercise 9.9 for the case where c is unchanged but the profits increase. b. Is there a sense in which an increase in costs and a decrease in profits have exactly the same effect on market outcomes, that is, exactly the same effect on the symmetric equilibria of the game? Explain your answer.