Entry Deterrence: Suppose there is an incumbent firm and a potential entrant and that the market demand is q(p) = A - Bp. The firms compete by setting prices as in Bertrand but they set price sequentially. Suppose that all consumers buy from the cheaper firm if the prices are different. Assume that if p1 0 are the fixed costs of starting production. (a) For any price pi, what price would firm 2 set if it entered the market? If firm 2 enters the market, what are the profits of firm 1? (b) For which prices p1 would firm 2 enter the market, assuming that if indifferent firm 2 chooses not to enter? (c) Assume that F