Answer the following questions based on the payoff matrix for a single-period, two-firm game for firms, Six, Inc., and Seven Corp. The numbers in the matrix indicate the profit in billions of dollars for a large and small advertising strategy. The profit outcome cells areA,B,C, andD.

Seven Corp. Strategy

Small Large

Small A Seven = $20B Seven = $25

Six = $20 Six = $0

Six, Inc., Strategy

Large C Seven = $0 C Seven = $15

Six = $25 Six = $15

(a)Is the game a zero-sum game or a profit-sum game?

(b)Which strategies are the dominant ones for Six, Inc., and Seven Corp.?

(c)What is the Nash equilibrium?

(d)What will be the total amount of profits for both firms if both firms decide their strategy simultaneously?