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The demand curve (price: 15, 10, 6, 2, 1, 0, Quantity: 1, 2, 3, 4, 5, 6) Alive may choose output of 1, 2, or 3 but Bob may choose output 0, 1, 2, 3,...

The demand curve (price: 15, 10, 6, 2, 1, 0, Quantity: 1, 2, 3, 4, 5, 6) Alive may choose output of 1, 2, or 3 but Bob may choose output 0, 1, 2, 3, i.e., he has more choice. That choice comes with a price, if Bob decideds to produce 1, 2 or 3, he must pay $7 to enter the market, i.e. his payoffs are reduced. (Need include extensice form, and backward induction, entry fee for Bob, and right payoffs)

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