Question: Figure 11-2 shows the tariff game among large countries. a. Redraw the payoff matrix for a game between a large and small country. b. What

Figure 11-2 shows the tariff game among large countries.
a. Redraw the payoff matrix for a game between a large and small country.
b. What is/are the Nash equilibrium/equilibria, assuming that the large country applies an optimal tariff?
c. What does your answer to (b) tell you about the role of the WTO in a situation like this?

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