Figure 8.11
-Refer to Figure 8.11. If Fred's profit in the second rectangle from the top were 1,600 instead of 1,500 then the path of the game would be

Question

Quizplus · Accepted Answer

If Fred's profit increases to 1,600 when choosing a large quantity, it indicates that choosing a large quantity becomes more profitable for Fred, deterring Barney from entering due to reduced profitability for entering. Thus, Fred chooses a large quantity and Barney stays out.

Figure 8.11 -Refer to Figure 8.11. If Fred's Profit in the Second