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Consider the following entry-deterrence game, where Green Cab can pay b > O to have an exclusive right to be the only cab service provider

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Consider the following entry-deterrence game, where Green Cab can pay b > O to have an exclusive right to be the only cab service provider in a town. If Green Cab doesn't pay for the right, a Rival firm can either Enter the market and play Cournot game with Green Cab or Don't Enter, in which case Green Cab monopolizes the market without paying for the right. If the Rival enters, its cost of entering is equal to F. . If F 40, Green Cab will [ [ Select ] 100, 0 Don't Enter Rival b=0 Enter 40, 40 - F Green Cab Pay b > 0 100 - b, 0

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