Case 5 An established company is earning prots Bm. Senses the threat of entry from a potential oompetitor. The cost to the incumbent of creating an effective barrier to entry is E. It the potential entrant does enter the market, then the benets to the incumbent will be Bd. while the potential entrant would have Bd F. where F is xed (and sunk} costs of entry. The incumbent must decide whether or not to create the strategic barrier. and may make this decision before the entrant can make its decision In which case will you do at (state the required conditions)? How sheuid Ed and F be so that we are in a natural monopoly situation? What is the advantage of the established company in this case