2. Using a payoff matrix to determine the equilibrium outcome Suppose that Snapface and Instashot are the only two firms in a hypothetical market that produce and sell polaroid cameras. The following payoff matrix gives profit scenarios for each company (in millions of dollars), depending on whether it chooses to set a high or low price for cameras. lnstashot Pricing High Low High 9, 9 3, 14 Snapface Pricing Low 14, 3 7, 7 For example, the lower-left cell shows that if Snapface prices low and Instashot prices high, Snapface will earn a profit of $14 million, and Instashot will earn a profit of $3 million. Assume this is a simultaneous game and that Snapface and Instashot are both profit-maximizing firms. If Snapface prices high, Instashot will make more profit if it chooses a price, and if Snapface prices low, Instashot will make more profit if it chooses a price. high If Instashot prices high, Snapface will make more profit if it chooses a low ice, and if Instashot prices low, Snapface will make more profit if it chooses a price.Considering all of the information given, pricing low a dominant strategy for both Snapface and Instashot. If the firms do not collude, what strategies will they is not choosing? is O Both Snapface and Instashot will choose a te. O Both Snapface and Instashot will choose a high price. O Snapface will choose a low price, and Instashot will choose a high price. O Snapface will choose a high price, and Instashot will choose a low price. True or False: The game between Snapface and Instashot is an example of the prisoners' dilemma. O True O False