The cost of maintenance of the new production capacity

Suppose that firm M in section (a) above can increase its production capacity in advance of C’s entry. The cost of maintenance of the new production capacity incurred by M is $5 million. If, upon C’s entry, M decides to start a price war, M can partially offset the maintenance costs with higher sales, saving $3 million. (Note: this figure does not include the maintenance costs.)
i. Assume that firm C moves first. Draw the game tree. (4 marks)
ii. What is the sub-game perfect Nash equilibrium of this game? Is M’s promise to start a price war a credible threat? (6 marks)
iii. Based on your answers to questions a) ii and b) ii, discuss whether firm M should invest in expanding its production capacity in advance of C’s entry. (2 marks)