i need all parts of this question answered please

In Course: EC202-_-__: M X Take-home exam via F X SEC202-5-FY TakeHom X My Dashboard - Study x 2014ec202-5-fy.pdf x C Get Homework Help W X G how to screenshot on X + C @ File | /Users/jubriladeribigbe/Downloads/EC202-5-FY%20TakeHome.pdf J EC202-5-FY 8 . Answer both parts (a) and (b) of this question. (a) [7 marks] "The more intense is competition in an oligopolistic market, the lower will be the number of firms in the market.' Is this statement true or false? Justify your answer. (b) An incumbent monopolist (M) faces a potential entrant (E). E has to decide whether to enter or stay out. Following the action taken by E (and observed by M), M has to decide whether to set a low price or a high price. The possible outcomes of these decisions are described in the following payoff matrix (E's profits are before the commas, M's profits are after the commas): Incumbent monopolist Low price High price Potential entrant Enter -1, 5 6, 6 Stay out 0, 8 0, 7 (i) [5 marks] Draw a game tree to represent this two-stage game. (ii) [5 marks] Using backward induction, find the subgame perfect equilibrium of the game. Explain your reasoning. (iii) [8 marks] Now suppose that M can build a larger plant prior to E's decision whether to enter or stay out. As a result, the payoff matrix of the two-stage game with choice of whether to enter or stay out by E, followed by choice of price by M will be: Incumbent monopolist Low price High price Potential Entrant Enter -2, 4 5, 3 Stay out 0, 5 0, 4 Draw a game tree for the two-stage game and find the subgame perfect equilibrium. Explain your