QUESTION 5: 12 pts Two oil producing countries, Kuwait and Saudi Arabia, sell their resource in the interdependent global market for oil. Each country must decide how many barrels of oil to produce each day. The total number of barrels exported by these two countries impacts the profit margins they can earn. The profits per day for Saudi Arabia are listed first, and the profits per day for Kuwait are listed second in the payoff matrix below. Both countries know each other's payoffs. (all data is fictitious) Kuwait 1 m barrels per day 2m barrels per day 4m barrels per day $64 mill $16 mill $48 mill $24 mill Saudi Arabia 5m barrels per day $60 mill $12 mill $40 mill $16 mill a. Does Saudi Arabia have a dominant strategy? Explain using numbers. (2 pts) Does Kuwait have a dominant strategy? Explain using numbers. (2 pts) C. If the two countries do not cooperate, what profits will Saudi Arabia be likely to get? Explain. (2 pts) d. Is the non-cooperation outcome best for the oil exporters as a whole? Explain. (2 pts) Suppose Saudi Arabia offered to pay Kuwait $9 million per day if they kept their production to 1 million barrels per day. (note this payment to Kuwait would be a cost to Saudi Arabia) Redraw the payoff matrix given this scenario. (2 pts) Would you action taken by Saudi Arabia in part e impact the outcome of the game? Why or why not? 2 pts