"rotate Edit PDF Go Window Help 'g Tl Edit ECON1152 - 2022 - JAN - EXAM - Take Home Approved Question 3 (13 points) Consider the following game. Firm E (entrant) is considering entering a market that currently has a single incumbent (rm I). lfit does so (by playing \"in"), the incumbent can respond in one of two ways: it can either accommodate the entrant, giving up some of its sales but causing no change in the market price, or it can ght the entrant, engaging in a costly market war that dramatically lowers the market price. The extensive form ofthis game is depicted below Firm E b) Using the extensive form, nd the Subgame Perfect Nash Equilibria. Compare your result to the one found in part a) and discuss the results. (7 Marks)