Now there are three potential entrants (firm 1, firm 2, and firm 3) that simultaneously

make entry decisions. If only one firm enters, the entering firm becomes a monopolist

while the other firms that stay out get zero profit. If more than one firm enter the

market, they play a Cournot game. The demand in the market is given by P = 6Q.

Assume that there is no production cost, but there is an entry cost of 5 as before.

a. What are the Nash equilibria in pure strategies in the entry game?

b. What is the symmetric mixed strategy equilibrium in which each firm enters with a probability p.