3 There are two firms that produce fiberglass canoes. Both River Queen and Ace Current must...

 

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3 There are two firms that produce fiberglass canoes. Both River Queen and Ace Current must decide whether to market a Premium canoe or a Regular canoe. The profit of a firm depends on the type of canoe produced by the other firm. In this chart, the first value is the profit of River Queen, and the second value is the profit of Ace Current. The firms make their decisions simultaneously in a one period situation. (The values in the chart are thousands of dollars.) Premium River Queen Regular Ace Current Premium Regular $400, $100 $450, $200 $150, $400 $200, $150 a Does River Queen have a dominant strategy? What decision will River Queen make? b Does Ace Current have a dominant strategy? What decision will Ace Current make? c Is there a Nash Equilibrium? 3 There are two firms that produce fiberglass canoes. Both River Queen and Ace Current must decide whether to market a Premium canoe or a Regular canoe. The profit of a firm depends on the type of canoe produced by the other firm. In this chart, the first value is the profit of River Queen, and the second value is the profit of Ace Current. The firms make their decisions simultaneously in a one period situation. (The values in the chart are thousands of dollars.) Premium River Queen Regular Ace Current Premium Regular $400, $100 $450, $200 $150, $400 $200, $150 a Does River Queen have a dominant strategy? What decision will River Queen make? b Does Ace Current have a dominant strategy? What decision will Ace Current make? c Is there a Nash Equilibrium?