Problem 1:

For the following, please answer "True" or "False" and explain why.

a)In simultaneous move game where one player has a dominant strategy, then he is sure that he will get the best possible payoff in a Nash equilibrium.

b)In a simultaneous game where both players prefer doing the opposite of what the opponent does, a Nash equilibrium does not exist.

c)If neither firm has a dominant strategy, a Nash equilibrium cannot exist.