Economics questions

Lime will enter the market if Time left 1:56:26 Let's denote this threshold as q (Case 1) Consider a case in which Bird chooses qp so that Lime is indifferent between entering or not. We suppose that Lime will not enter if indifferent. Then, Bird's profit is OTB(qd, 20) OTB(qd, 0) OTB(qd, 60 - qd) OTB(qd, 30 - (1/2) qd) which is calculated as (Case 2) If Bird allows Lime's entry, then Bird's profit is OTB(qd, 0) OTB(qd, 30 - (1/2) q) OTB(qd, 20) OTB(qd, 60 - qd) whose maximum is and whose maximizer is In SPNE, Lime * the market. Finish attempt . Previous pageTime left 1:58:17 Microeconomic Theory Question 13 Not yet Suppose Bird is the sole supplier of the scooter-sharing service in a local market. Now, Lime is considering entry to the market by paying some fixed cost answered K = 32 to build a management office in the market. Points out of The demand for the scooter-sharing service is given by p = 130 - 2q where the q is the total number of scooters in the market and the cost of the service 20.00 is c (q) = 10q for i = B, L. If Lime enters the market, it would produce qr Flag question Lime will enter the market if Therefore, Lime will enter if qB is * than Let's denote this threshold as q. (Case 1) Consider a case in which Bird chooses qp so that Lime is indifferent between entering or not. We suppose that Lime will not enter if indifferent. Then, Bird's profit is OTB(qd, 20) OTB(q, 0) OTB(q, 60 - qd) OTB(qd, 30 - (1/2)q") which is calculated as (Case 2) If Bird allows Lime's entry, then Bird's profit is OTB(q, 0) OTB(qd, 30 - (1/2)q") OTB(qd, 20)