Salgado $(2008)$ found that AMD's cost of manufacturing computer chips was about $12\%$ higher than Intel's cost because AMD had less learning by doing as it had produced fewer units.

The more an incumbent firm produces in the first period, the lower its marginal cost in the second period If a potential rival expects the incumbent to produce a large quantity in the second period, it does not enter.

Assume for simplicity the game tree is illustrated in the figure to the right. What is the subgame perfect Nash equilibrium?

The subgame perfect Nash equilibrium is for the incumbent produce the quantity. If the incumbent produces the small quantity the rival should

If the incumbent's profit from producing the large quantity were less than $ then it would not pay for the incumbent to produce the large quantity. $($Enter your response as a whole number$)$