Burger Doodle, the incumbent firm, wishes to set a limit price of $8 (rather than the profit-maximizing price of $12) to

[answerhappygod]

Burger Doodle, the incumbent firm, wishes to set a limit price
of $8 (rather than the profit-maximizing price of $12) to prevent
Designer Burger from entering its profitable market. The game tree
above shows the payoffs for various decisions. Burger Doodle makes
its pricing decision, then Designer Burger decides whether to enter
or stay out of the market. If Designer Burger chooses to enter the
market, then Burger Doodle may or may not decide to accommodate
Designer’s entry by changing its initial price to the Nash
equilibrium price of $10.
In order for Burger Doodle to successfully implement a limit
pricing strategy for entry deterrence, it must be able to