Question: please answer this 6. (6 marks) GAME THEORY AND OLIGOPOLY. Profit payoff Matrix for Home Depot and Rona. Below is the profit payoff matrix for

please answer this

6. (6 marks) GAME THEORY AND OLIGOPOLY. Profit payoff Matrix for Home Depot and Rona. Below is the profit payoff matrix for these two building supply stores on whether they set their plywood price HIGH or LOW TABLE 1 Rona LOW price Rona HIGH price Home Depot LOW price $40 million for Rona $45 million for Rona $38 million for Home Depot $30 million for Home Depot Home Depot HIGH price $30 million for Rona $35 million for Rona $30 million for Home Depot $39 million for Home Depot Using Table, what if any is the collusive outcome? Explain whether it will occur. Using Table, what if any is the Nash equilibrium? Explain whether it will occur.TABLE 2 Rona LOW price Rona HIGH price Home Depot LOW price $21 million for Rona $36 million for Rona $21 million for Home Depot $15 million for Home Depot Home Depot HIGH price $15 million for Rona $24 million for Rona $36 million for Home Depot $24 million for Home Depot What is meant by a dominant strategy? Using Table 2, is there a dominant strategy? Explain if there is a Nash equilibrium and a collusive equilibrium

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