Question: Problem #3 You are given the following payoff matrix, where the payoffs represent firm A & B's profits. Firms A & B have formed a

Problem #3 You are given the following payoff matrix, where the payoffs represent firm A & B's profits. Firms A & B have formed a cartel. Each firm wants to determine if they should cheat or not cheat (Do Not Cheat) in this cartel. a. Determine whether firms A & B face the prisoners' dilemma. Explain. b. What would happen if we changed the payoff at the bottom left cell to (5, 5)? Explain. Firm B Cheat Do Not Cheat Cheat (4, 5) (8, 1) Firm A Do Not Cheat (2, 6) (6, 5)

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