Given the following payof

Given the following payof

Given the following payoff matrix, (a) indicate the best strategy for each firm. (b) Will firm A use the low price as a threat if firm B enters? (c) What could firm A do to make its threat credible without building excess capacity?Low Price    (3, 21)           (3,1)High Price    (4, 5)             (6, 3)

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