The option is owner or thug

Choice one is large or small Option two is enter or not enter

A thug wants the contents of a safe tells the safe's owner, "I will kill you if you don't open the safe, and let you live if you do." Should the owner believe the threat and open the safe? The table shows the value that each person places on the various possible outcomes. Similar games appear in many films, including Die Hard, Crimson Tide, and The Maltese Falcon. Assume for simplicity the game tree is illustrated in the figure to the right. Who moves first? The moves first. What is the equilibrium? Does the safe's owner believe the thug's threat? Does the safe's owner open the safe? What is the subgame perfect Nash equilibrium? A. The Nash equilibrium is for the owner to open the safe and for the thug to only kill if the owner does not open the safe. B. The Nash equilibrium is for the owner to open the safe and for the thug to kill regardless of whether the owner opens the safe. C. The Nash equilibrium is for the owner to not open the safe and for the thug to only kill if the owner does not open the safe. D. The game does not have a Nash equilibrium. E. The Nash equilibrium is for the owner to open the safe and for the thug to not kill regardless of whether the owner opens the safe. Salgado (2008) found that AMD's cost of manufacturing computer chips was about 12% higher than Intel's cost because AMD had less learning by doing as it had produced fewer units. The more an incumbent firm produces in the first period, the lower its marginal cost in the second period. If a potential rival expects the incumbent to produce a large quantity in the second period, it does not enter. Assume for simplicity the game tree is illustrated in the figure to the right. What is the subgame perfect Nash equilibrium? The subgame perfect Nash equilibrium is for the incumbent produce the quantity. If the incumbent produces the small quantity the rival should If the incumbent's profit from producing the large quantity were less than \$ then it would not pay for the incumbent to produce the large quantity. (Enter your response as a whole number.)