A firm can benefit from strategic behaviour that raises its rival's costs. In this context:

1. Describe indirect methods to rise a rival's costs.
2. Using an extensive-form representation of the cost-raising game, describe a situation where an incumbent prefers to increase all market costs to keep its rival out of the market.
3. Explain a situation where the incumbent is using a less intense labour technology and how it can increase a competitor's labour costs. Use a graph to support your arguments. Use examples.