Question: It is uncertain ( odds are 5 0 - 5 0 ) whether Firm X will enter a new market in the next three months.

It is uncertain (odds are 50-50) whether Firm X will enter a new market in the next three months. Firm Y is thinking of entering the same market but wont be ready to do so for six months. Firm Y expects to earn $4 million if it is the sole market supplier but will lose $6 million if it must share the market with Firm X. If Firm X employs an optimal entry strategy, Firm Y's overall expected profit (before Firm X has made its move) is:

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