Problem 4 (20 points) An industry is currently a monopoly and the incumbent monopolist is mak- ing a profit of $2 million. A potential entrant is considering whether or not to enter this industry. If she stays out, her profit will be $0 million; if she enters. the incumbent can either fight with a price war whose outcome is that each firm makes a loss of $1 million, or it can accommodate entry by sharing the market with the entrant, in which case each firm makes a profit of $1 million. (a) Draw the extensive-form game associated with this situation. (b) Describe the backwards-induction equilibrium of this game. (c) Write the strategic-form game associated with the situation. (d) Describe and discuss the Nash equilibria of the strategic-form game in (c)