Question 1 10 points Save Answer Two firms simultaneously decide whether to Enter (E) or stay out (O). The state of the market can be strong or weak and it is known by Firm 1 only. Firm 2 believes that a strong and a weak state are equally likely. Letting Firm 1 be the row choser, the payoffs when the market is weak are: W N o m N N The payoffs when the market is strong are: N/N Om The ex-ante normal form associated with this Bayesian game is: O A. E O EE 3, 5 , 2 2 EO 1.5, 2.5, 2 2 OE 3.5, 5.5. 2 2 00 2, 3, 2 2 B. 0 EE 3. 5 , 1 2 ' EO 1.5 , 2.5 , 2 OF 15 .5 , 00 3 , O C. 0 EE 5 , 2 EO 1.5, 2.5, 1 2 OE 3.5, 5.5, 1 2 oo 2, 3, 2 2 OD. EE 3, 2 5, 2 EO 2 , 2 2 , 2 W N NN NN 2 5 . 2 00 2 , 2 3 , 2