Two companies, A and B, are considering entry into the same two markets: Asia or Australia. Due to financial constraints each company can only enter one of the two markets. The expected payoffs to each company for each possible entry scenario are as follows:

a) Construct a game that represents the entry decision.
b) What type of game is it?
c) Identify all Nash equilibriums for the game.
d) Company A has hired you as a consultant. What advice would you give them regarding this entry decision?

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Company B Decision Payoff to A Payoff to B Company A Decision Enter Asia $35M $50M Enter Asia Enter Australia $50M $90M Enter Asia $85M $6OM Enter Australia Enter Asia Enter Australia $40M $45M Enter Australia