Скачать или смотреть Before entry, the incumbent earns a monopoly profit of π_m= 50 (million). If entry occurs, the…

Before entry, the incumbent earns a monopoly profit of π_m= 50 (million). If entry occurs, the incumbent and entrant each earn the duopoly profit, π_d= 15 . Suppose that the incumbent can induce the government to require all firms to install pollution-control devices that cost each firm 20. Show the game tree. Should the incumbent urge the government to require pollution-control devices? Why or why not?

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