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Q4. [9 Marks] a) Provide an explanation of a Dominant Strategy and a Dominated Strategy in Game Theory analysis. (2 marks)

b) Can the threat of a price war deter entry by potential competitors? What actions might a firm take to make this threat credible? (3 marks)

c) We can use game theory to look at the trade policies of Australia and India. The two countries are considering policies to open or close their import markets. The payoff matrix is shown below.