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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 10 million 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?
a.? Accommodate
b. ?Run away
c.? Fight
d.? Shut down
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