3. Suppose there is a firm who is considering entering (entrant) a market where another firm is currently a monopoly (incumbent). If the entrant enters the market, the incumbent can 'fight' by expanding output and dropping prices, or it can 'not fight' by cutting back its output and sharing the market. The profits from different decisions are in the table below, with the profits of the Entrant on the left of each cell and the profits of the incumbent on the right of each cell. Incumbent Fight Don't Fight Entrant In 5, 1 8, 12 Out 0, 8 0, 22 Which of the following will be a Nash equilibrium for this sequential game (entrant acts before the incumbent)? Briefly explain your answer. a. (Out, Fight) b. (In, Fight) c. (Out, Don't fight) d. (In, Don't fight)