Question: Q 3 Answer the question based on the following payoff matrix for a duopoly of Wilson Athletics and Econ Ball Company (the two firms are

Q 3 Answer the question based on the following payoff matrix for a duopoly of Wilson Athletics and Econ Ball Company (the two firms are making up the ball market). The numbers indicate the profit in millions of dollars for a high-price or a low-price strategy. (20 points) Econ Ball Company (columns) High Price Low Price Wilson Econ Co = $1000 Econ Co = $2000 (rows) High price Wilson = $1000 Wilson = $125 Low price Econ Co = $125 Econ Co = $100 Wilson = $2000 Wilson = $100 Refer to the above payoff matrix. A. If you are Econ Ball Co, and you move first, what would you choose? (5 points) B. Is there a first-mover advantage? Explain for credit. (5 points) C. What is the Nash equilibrium? Explain why. (5 points) D. Is the Nash equilibrium a Prisoner's Dilemma? Why or why not? (5 points) Answer: Type here to search L B

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