Firm 'l must decide whether to enter an industry in which rm 2 is an incumbent. To enter this industry. rm 'l must choose to build either a plant with a small output capacity (5), or large output capacity (L). A plant with small capacity costs $50 to set up: one with large capacity cost $175. in either case. the marginal cost of production is zero. But rm 1 can also opt to stay out (0). in which case it does not incur any type of cost. Firm 2 is able to observe rm 'l's decision before deciding whether to expand or not its al small output capacity operation. Expanding (E) costs rm 2 $75. whereas not expanding (N) incurs no cost for the rm. In either case. the marginal cost of production is also zero. The revenues under the different scenarios are given below. - If only one small firm exists its revenue is $30. the other earns zero. 7 If two small rms exist, each earns revenue of $70. - If only one large firm exists. its revenue is $200. the other earns Zero. 7 If two large firms exist, each earns revenue of $90. - If one small and one large firm exist the small firm earns $40, while the large one earns 5160. Answer the following: a) How many pure strategies are available for rm 1? Cl b) How many pure strategies are available for rm 2? D c) What is the sum of the rms' prots in the subgame perfect equilibrium? Cl