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Use the Following Case from Question

question 81

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Use the following case from question
Irene's Dairy is deciding whether or not to enter the market for ice cream,currently monopolized by Mattie's Ice-cream.If it enters the market,Mattie's can either accommodate him and share his 10million in profits equally with Irene or fight him and cause a 5million loss for each in a price war.​
-​In a sequential game,if Irene decides to enter the market,what would be Mattie's best response?


Definitions:

Brittle Deformation

The fracturing of rock under stress, without significant plastic deformation.

Metamorphism

The process by which the mineral composition and structure of a rock are changed by heat, pressure, or chemically active fluids.

Fluid Pressure

The pressure exerted by a fluid at rest or in motion, which can significantly affect geological structures and processes.

Compression

A force that presses or squeezes material together, reducing its volume or distorting its shape.

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