Does wanabe believe agile’s assertion

Reference no: EM131404012

Agile Airlines is making $10 million a year economic profit on a route on which it has a monopoly. Wanabe Airlines is considering entering the market and operating on this route. Agile warns Wanabe to stay out and threatens to cut the price to the point at which Wanabe will make no profit if it enters. Wanabe does some research and determines that the payoff matrix for the game in which it is engaged with Agile is that shown in Table 2. Does Wanabe believe Agile's assertion? Does Wanabe enter or not? Explain.

Reference no: EM131404012

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