Boeing and Airbus make commercial aircraft. Boeing is located in America, Airbus is located in Europe. The market for

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Boeing and Airbus make commercial aircraft. Boeing is
located in America, Airbus is located in Europe. The market
for triple jet engines is only in countries outside of America and
Europe. Each firm has to decide whether to enter the market
for triple engine jets that will be sold to countries outside of
America and Europe. If a firm does not enter the market its
payoff is 0. If only one firm enters the market its payoff is
20. If both firms enter the market then Boeing's payoff is x
and Airbus's payoff is y, each of which can be positive or
negative. Boeing is already the established leader so Airbus
believes that Boeing is going to enter the market, and Airbus
responds accordingly.
(a) For what values of x and y will Boeing enter the market and
Airbus not enter the market?
(b) For what values of x and y will a profit shifting subsidy
from Europe to Airbus be successful? How large does the
subsidy have to be?
(c) For what values of x and y will a profit shifting subsidy
from Europe to Airbus fail? Why would cause the subsidy to
fail?