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D Question 7 10 pts E-Scoot and Mobilit-E compete in the market for electric scooter sharing. The matrix below shows profits for the firms for
D Question 7 10 pts E-Scoot and Mobilit-E compete in the market for electric scooter sharing. The matrix below shows profits for the firms for high quantity and low quantity choices. In each cell, the payoff to E-Scoot in on the left (in red). Mobilit-E High Quantity|Low Quantity E-Scoot High Quantity 2000, 1800 2500, 1500 Low Quantity 1600, 2400 X, X a) This game is a prisoners' dilemma if X is less than 2000 and greater than 1800 b) If X = 2200, the Nash Equilibrium payoffs are |2000 for E-Scoot and 1800 for Mobilit-E. c) For part c the payoff matrix above is no longer relevant. Now suppose that E-Scoot is initially the only firm in this market and earns a profit of 3600 if it remains a monopolist. However, Mobilit-E can enter the market under the following two conditions: 1) Mobilit-E pays an up-front fixed investment cost of F to
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