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Use the following information to complete the payoff matrix on the right. Quantity: Quantity: Condition Price firm 1 firm 2 Both firms enter 11 11

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Use the following information to complete the payoff matrix on the right. Quantity: Quantity: Condition Price firm 1 firm 2 Both firms enter 11 11 Only firm 1 enters 18 Only firm 2 enters 18 The firms have the following identical cost function: C(q) = 2q + 25 if q>0, or zero if q = 0. There is room for two firms in this market if they play a mixed strategy Nash equilibriumEach cell contains payoffs for Firm 2, Firm 1. Firm 1 Enter Not enter Enter Firm 2 0.0 0.0 Not enter 0.0 0.0

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