Question 9 0.5 p Consider the following setting between two firms: Call them Firm 1 (Entrant) and Firm 2 (Incumbent). Firm 1 first whether or not to enter a market. After Firm 1 makes their decision, the decision and then decides whether or not to open a 2nd location. The profits for each scenario are the following: i) if firm 1 enters and firm 2 opens a 2nd location, then firm 1 earns -20 and firm 2 to earns 80 ii) if firm 1 enters and firm 2 does not open a 2nd location, then firm 1 earns 40 and firm 2 to earns 100 ili) if firm 1 does not enter and firm 2 opens a 2nd location, then firm 1 earns 0 and firm 2 to earns 200 iv) if firm 1 does not enter and firm 2 does not open a 2nd location, then firm 1 earns 0 and firm 2 to earns 160 Which of the following is the predicted outcome in this setting? O A. Firm 1 will enter, and firm 2 will open a 2nd location O B. Firm 1 will not enter, and firm 2 will open a 2nd location O C. Firm 1 will enter, and firm 2 will not open a 2nd location O D. Firm 1 will not enter, and firm 2 will not open a 2nd location