Question: I need some help with these problems, thank you so much! Text Question 4.1 55 Question Help G A monopoly manufacturing plant currently uses many

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 4.1 55 Question Help G A monopoly manufacturing plant currently uses many workers to pack its product Q into boxes. It can replace these workers with an expensive set of robotic arms. Although the robotic arms raise the monopoly's xed cost substantially, they lower Q its marginal cost because it no longer has to hire as many workers. Enter The payoffs are represented in the game tree illustrated in the gure to the right. (1'600'1'200) IZ'i What is the subgame perfect Nash equilibrium? Don't inves O A. The Nash equilibrium is for the incumbent to invest and for the rival to (3.6009) only enter if the incumbent does not invest. Don't enter O B. The Nash equilibrium is for the incumbent to invest and for the rival to enter regardless of whether the incumbent invests. Enter (528, - 144) O C. The Nash equilibrium is for the incumbent to invest and for the rival to not enter regardless of whether the incumbent invests. (2 000 O) O D. The game does not have a Nash equililbrium. Don't enter Y i O E. The Nash equilibrium is for the incumbent to not invest and for the rival to only enter if the incumbent does not invest

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