Question: Please help answer these questions and show your work. Thank you! Rise Advertise Don't Advertise Advertise $400, $500 $650, $525 Umlaut Don't Advertise $450, $650

Please help answer these questions and show your work. Thank you!

Please help answer these questions and show your work. Thank you! Rise

Rise Advertise Don't Advertise Advertise $400, $500 $650, $525 Umlaut Don't Advertise $450, $650 $600, $500 (a) Does Umlaut have a dominant strategy? Explain. (b) What market structure do Umlaut and Rise operate in? Explain. (c) If Umlaut decides to advertise, what is the better price move for Rise? (d) What might preserve the supernormal profits of Umlaut and Rise in the long run? (e) What is the profit of each firm in any Nash equilibrium/equilibria? (f) The advertising agency that both Umlaut and Rise use increases its ad rates by $75 per day. Draw a new payoff matrix to reflect this change. (g) What are Umlaut's and Rise's dominant strategies (if any) after the advertising rate change? i. Umlaut ii. Rise (h) If the firms do not cooperate after the advertising cost increase and act simultaneously, what will their new profits be

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