Use the Following Case from Question

question 79

Multiple Choice

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,given Mattie's best response function,what would Irene's best response be?

• A)​Not enter the market
• B)Enter the market
• C)Fight
• D)​Run away

---

Definitions:

General Journal Entries

Records of financial transactions in the order they occur, serving as the initial place of entry in the accounting system.

Invoice Price

The initial price listed by a seller to a buyer on an invoice, before any discounts or adjustments.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including repayment schedule, interest rate, and due dates.

General Journal Entries

General journal entries are records of financial transactions in the general journal as part of the double-entry bookkeeping system, noting the accounts and amounts debited and credited.