(solution) Two indentical restaurants, Zuhras and Fatimas, consider

(solution) Two indentical restaurants, Zuhras and Fatimas, consider

Two indentical restaurants, Zuhraís and Fatimaís, consider entering a new market. Setting upin the new market incurs a once-for-all cost K > 0. Production involves constant marginal costc. If both restaurants enter the market Bertrand competition then takes place afterwards. If therestaurants make their entry decision sequentially, what is the equilibrium?