Question: please Solve 2. The payoff matrix below shows the potential net profits of Apple and Samsung based on whether they choose to produce flip phones

please Solve

please Solve 2. The payoff matrix below shows the potential net profits

2. The payoff matrix below shows the potential net profits of Apple and Samsung based on whether they choose to produce flip phones versus slide phones. Apple (A) Flip phone Slide phone A: + 20 A: +30 Flip phone Samsung S: - 5 S: + 10 (S) A: + 50 A: +20 Slide phone S: + 5 S: -5 a) Find the Nash equilibria of the game above. Briefly explain. b) Suppose the Korean government decides to provide a $30 subsidy to Samsung for each flip phone produced. Reflect the impact of this policy on the payoff matrix below. Apple Flip phone Slide phone A: Flip phone A Samsung S: S: A: A: Slide phone S: S: Find the Nash equilibrium of the game with the new payoffs. Does the subsidy lead to a net welfare gain for Korea? Briefly explain. c) Now consider the payoff matrix in part (a) without any subsidies. If Samsung could move before Apple, would the Nash equilibrium change? Explain

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