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economics question 2. Suppose there is a monopolist in a market (incumbent). A competitor is considering entering the market (entrant). The incumbent has an opportunity

economics question

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2. Suppose there is a monopolist in a market (incumbent). A competitor is considering entering the market (entrant). The incumbent has an opportunity to fight (compete) or not fight (share the market). The payoffs are given in the following diagram: Entrant, Incumbent 03,5 Incumbent Fight chooses In Entrant Don't Fight 0 5,4 chooses Incumbent chooses Fight 0 0,9 Out Don't Fight 0 0. 14 What is the Nash equilibrium in this situation

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