HW Help, please.

Salgado (2008) found that AMD's cost of manufacturing computer chips was about 12% higher than Intel's cost because AMD had less learning by doing as it had produced fewer units. The more an incumbent rm produces in the rst period, the lower its marginal cost in the second period. If a potential rival expects the incumbent to produce a large quantity in the second period, it does not enter. Assume for simplicity the game tree is illustrated in the gure to the right. What is the subgame perfect Nash equilibrium? The subgame perfect Nash equilibrium is for the incumbent produce the V quantity. If the incumbent produces the small quantity the rival should V . If the incumbent's prot from producing the large quantity were less than $ , then it would not pay for the incumbent to produce the large quantity. (Enter your response as a whole number.) 9,0 Enter (250,250) D,- (500,0) Don't enter (300,0)