question below

Incumbent Stackelberg (accommodate) Deter Enter 500 450 Firm 2 150 O Do Not 1000 900 Enter O O 2) The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. If the fixed cost of entry were to increase, which of the following would occur? A) The incumbent chooses the Cournot level of output. B) The incumbent shuts down. C) The entry-deterring level of output rises. D) The entry-deterring level of output falls