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Consider the following entry game between an incumbent (I, blue payoff) and an entrant (E, green payoff). E enter out (60+860, 0) fight accommodate E
Consider the following entry game between an incumbent (I, blue payoff) and an entrant (E, green payoff). E enter out (60+860, 0) fight accommodate E E out stay (10+860, -20) (20+820, 20+820) Which one of the following statements is correct?\\ (60+650, 0) fight accommodate stay (10+560, -20) (20+620, 20+520) Which one of the following statements is correct? 0 The entrant will always stay out of the market in equilibrium. 0 The entrant will always enter the market in equilibrium. 0 In equilibrium, the entrant enters the market if 5 is larger than 1/4. 0 In equilibrium, the entrant enters the market if 6 is smaller than 1/4. 0 None of the above
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