Question: I need some help with these problems, thank you so much! Text Question 3.3 55 Question Help a Salgado (2008) found thatAMD's cost of manufacturing

I need some help with these problems, thank you so much!

I need some help with these problems, thank you so much! Text

Text Question 3.3 55 Question Help a Salgado (2008) found thatAMD's cost of manufacturing computer chips was about Q 12% higher than Intel's cost because AMD had less learning by doing as it had produced fewer units. Q Enter The more an incumbent rm produces in the rst period, the lower its marginal cost in the second period. If a potential rival expects the incumbent to produce a large quantity in the second period, it does not enter. (250,250) I3 Assume for simplicity the game tree is illustrated in the gure to the right. What is the subgame perfect Nash equilibrium? (500,0) Don't enter The subgame perfect Nash equilibrium is for the incumbent produce the quantity. If the incumbent produces the small quantity the rival should V . (300,0)

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