Game With Monopoly Investing in Additional Capacity New Firm Chooses New Firm Enters New firm does not enter Monopoly Monopoly Chooses Chooses High Price Low Price High Price oW Price Monopoly gets Monopoly gets Monopoly gets Monopoly gets $3, New firm gets $4, New firm gets $5, New firm gets $4, New firm gets $3(S millions)$0 9-119-11 Game With Monopoly Investing in Additional Capacity New Firm Chooses New Firm Enters New Firm Does Not Enter Monopoly gets $3, New firm gets $2 High Price Low Price Monopoly Chooses Monopoly gets $5, New firm gets $0 Monopoly gets $4, New firm gets $0 Monopoly Chooses Monopoly gets $4, New firm gets –$3 High Price Low Price ($ millions)