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Suppose that Big Bad Company (BB) is an existing firm producing bricks. New Entrant (NE) is a potential new entrant in the brick market. Big
Suppose that Big Bad Company (BB) is an existing firm producing bricks. New Entrant (NE) is a potential new entrant in the brick market. Big Bad says that if NE enters, then it will force them out of the market. Specifically, if BB keeps NE out of the market, it will earn $125 million in revenue. If NE enters and BB fights, BB will earn $10 million and NE will earn $ 10 million. If NE enters and BB does not fight, BB will earn $75 million and NE will earn $5 million. k BB. NE 1 Do not enter Enter DO NE nces Fight Do not right BB. NE Complete the blanks in the figure, where the terminal nodes c through i indicate the revenue earned by each specific firm: rences a. New Entrant b. Big Bad C. d. e. f. h. 1. New Entrant (NE) should Click to select)
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