Question: Please Explain the calculation/reasoning fully. Thank you 1. Consider the following game: Gillette and Schick both sell razors with 5 or 6 blades and could

Please Explain the calculation/reasoning fully. Thank you

1. Consider the following game: Gillette and Schick both sell razors with 5 or 6 blades and could innovate to produce 7 and 8 blade razors... New razors Don't innovate New Razors 1/1 0/22 Don't innovate 22/0 21/21 (a) What is the Nash equilibrium Of this game? (b) Where would Gillette and Schick like to end up? (c) Without calculation, do you think that tacit collusion would be likely or unlikely given the payoffs above? Briefly explain

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