Question: Don't understand this problem Two rms are in the wine market. Each can choose to produce high quality wine, or low quality wine. Resulting prots

Don't understand this problem

Two rms are in the wine market. Each can choose to produce high quality wine, or low quality wine. Resulting prots are given by the following payoff matrix: 20, 30 900, 600 100, 800 50,50 a. Does Firm 1 have a dominant strategy? Does Firm 2? b. Are there any Nash Equilibria? c. If both rms act simultaneously and without communication, what is the likely outcome? d. Imagine this game is played in sequential form and Firm 1 gets to make the rst move. What is the subgame perfect Nash equilibrium in this version of the game

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