a) Recall that firm B's best-response function is 120 - q.4 48 = 2 Substitute this best-response function into the equation for A's profit, EA = 4A X (120 - 94 - 98) , to express A's profit as a function of qa, where profits for A are labelled by A- Next, substitute this best-response function into the analogous equation for B's profit, TB = 46 X (120 - ga - 98) . to compute B's profit as a function of ga, where profits for B are labelled 7s. Finally, write the expression for A's profit if B produces zero as a function of gA, labelled a y (where the M subscript stands for the fact that A is a monopoly if B produces zero). b) Use the formulae from a) to fill in the following table: Comparison of Profits ATM 0 20 40 60 80 100 120 The Stackelberg equilibrium for this industry is ga = 60. Does your table from b) confirm this result? Explain your answer. c) How much would A have to produce to deter B's entry if B had a fixed cost of entry equal to a bit more than 400? If B had a fixed cost of entry a bit more than 100? Would it be worthwhile for A to deter B's entry in these cases? Explain your answers