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The main subgame perfect equilibrium is if the entrant enters the market and the monopolist decides to not fight the pricing competition. This would ultimately

The main subgame perfect equilibrium is if the entrant enters the market and the monopolist decides to not fight the pricing competition. This would ultimately be the best outcome. There is a second subgame perfect equilibrium because if the entrant does not enter the market, the monopolist is indifferent because either fighting or not fighting gives them the same outcome. (c) What could the Monopolist do

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