I need some help with these problems, thank you so much!

Text Question 4.4 In a duopoly market, to produce a given amount of output, Firm 1 uses relatively more capital but less labor than does Firm 2. Both rms hire labor from the same labor union, which sets the same wage for both rms. Firm 1 is about to bargain with the union. Whatever wage it negotiates, Firm 2 has to pay the same wage. Because this industry is suffering from a downturn in demand, the union is willing to accept the current wage. However, if Firm 1 agrees to a higher wage, its cost of production will rise by less than Firm 2's cost. The game tree shows the prots corresponding to the various actions by the rms. Firm 1's prot is A if it chooses the high wage and Firm 2 chooses the low output level. Under what condition should Firm 1 offer to pay a high wage? Assume for simplicity the game tree is illustrated in the gure to the right. Suppose that A = 65 but that prots under the current wage and high output are 70 for Firm 1 and 55 for Firm 2. Which wage would Firm 1 choose? Firm1 should choose the V wage. 55 Question Help High output (40,20) High wage (A25) Low output High output (7055) Current wag (60,35) Low output a q IZ': O