Figure 1
The horizontal axis is labeled “X”. The horizontal axis shows two marked points labeled “StartFraction alpha minus c over theta EndFraction minus StartFraction 3 square root beta R over theta EndFraction” and “alpha minus c divided by theta”. The vertical axis includes a marked value labeled “R” and an expression “1 divided by beta open parenthesis alpha minus c divided by 3 close parenthesis squared”. The graph shows a downward-sloping curve labeled “pi subscript y plus R” that starts high on the vertical axis at “1 divided by beta open parenthesis alpha minus c divided by 3 close parenthesis squared” and decreases concave up toward the horizontal axis at “alpha minus c divided by theta”. A horizontal line starts on the vertical axis at “R” and extends across the graph. The curve intersects this horizontal line at a point above the horizontal axis. From this intersection, a vertical dashed line drops to the horizontal axis, marking the point labeled “StartFraction alpha minus c over theta EndFraction minus StartFraction 3 square root beta R over theta EndFraction”.First-period output and entrant’s profits (generic rival). Source(s): Figure by author