HW help, please! Thank you so much!

Use a game tree to illustrate why an aircraft manufacturer may price below the current marginal cost in the short run if it has a steep learning curve. (Hint: Show that learning by doing lowers its cost in the second period.) Assume for simplicity the game tree is illustrated in the gure to the right. Pricing below marginal cost reduces prots but gives the incumbent a cost advantage over potential rivals. What is the subgame perfect Nash equilibrium? Enter (250, - 50) O A. The Nash equilibrium is for the incumbent to price above marginal cost and for the rival to only enter if BEIOW MC the incumbent prices above marginal cost. (3000) Don't enter 0 B. The Nash equilibrium is for the incumbent to price below marginal oost and for the rival to enter : regardless of whether the incumbent prices above marginal cost. Enter (200,200) 0 C. The Nash equilibrium is for the incumbent to price below marginal cost and for the rival to not enter . . . . Above MC regardless of whether the Incumbent prices above marginal cost. 0 D. The Nash equilibrium is for the incumbent to price below marginal cost and for the rival to only enter if the incumbent prices above marginal cost. 1 Don't enter (400,0) 0 E. The game does not have a Nash equililbrium. ,op