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1.Mitchell Electronics produces a home video game that has become very popular with children.Mitchell's managers have reason to believe that Wright Televideo Company is considering

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1.Mitchell Electronics produces a home video game that has become very popular with children.Mitchell's managers have reason to believe that Wright Televideo Company is considering entering the market with a competing product.Mitchell must decide whether to set a high price to accommodate entry or a low, entry-deterring price.The payoff matrix below shows the profit outcome for each company under the alternative price and entry strategies.

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