Refer to Figure 8.11. If Fred's profit in the top rectangle were 1,300 instead of 500, then the path of the game would be:

A. Fred chooses a small quantity and Barney enters.
B. Fred chooses a large quantity and Barney enters.
C. Fred chooses a small quantity and Barney stays out.
D. Fred chooses a large quantity and Barney stays out.


Answer: A

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