Question: The payoff table shows the competition between a new entrant (Firm 1) and an incumbent firm (Firm 2). Determine each firm's equilibrium strategy. FIRM 2

The payoff table shows the competition between a new entrant (Firm 1) and an incumbent firm (Firm 2). Determine each firm's equilibrium strategy.

FIRM 2 FIRM 2

FIRM 1 FIGHT HIGH PRICE

ENTER -10,15 10,10

NO ENTER 0,20 0,20

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