Based on the Aghion and Bolton models assumptions, in the absence of the long-term contract, the expected payoff of the entrant can be calculated as follows:Select one:a.p(75-50)+(1-p)(25-12,5), where p is the probability of the new entry.b.p(50-25)+(1-p)(25-12,5), where p is the probability of the new entry.c.p(50-25)+(1-p)(25-0), where p is the probability of the new entry.d.p(100-50)+(1-p)(50-25), where p is the probability of the new entry.e.p(50-25)+(1-p)(0), where p is the probability of the new entry.

Based on the Aghion and Bolton models assupmtions the expected payoff of the incumbent is:Select one:a.25.b.0.c.75.d.50.e.100.

Based on the Aghion and Bolton models assupmtions - reservation price equals 100, the incumbent's unit cost of production is 50, the entrant's unit cost is distributed randomly but uniformly on the interval between 0 and 100, there is a Bertrand price competetion in the second period of the game - the expected payoff of the incumbent is:Select one:a.100.b.75.c.50.d.25.e.0.

In the Aghion and Bolton model all initial participants know that the unit cost c of the potential entrant is distributed randomly but uniformly on the interval between 0 and 50.Select one:TrueFalse

Aghion and Bolton assume that if the entrant actually enters the market at that time, Bertrand competition will emerge between the incumbent firm and the new rival.Select one:TrueFalse

Alice, Bob, and Confucius are bored during recess, so they decide to play a new game. Each of them puts a dollar in the pot, and each tosses a coin. Alice wins if the coins land all heads or all tails. Bob wins if two heads and one tail land, and Confucius wins if one head and two tails land. The coins are fair, and the winner receives a net payment of $2 ($3 - $1 = $2), and the losers lose their $1.What is Confucius' expected payoff? Round your answer to three decimal places