Question Completion Status: QUESTION 4 10 poir Question 4 - Game theory: strategy concepts [10 marke] Suppose a town only has two petrol stations, United and BP. Each could choose to charge a high price or low price, as shown in the matrix below. BP BP charges a low price BP charges a high price United charges a BP has low profit, BP has no profit, United low price United has low profit United has high profit United charges a BP has high profit, BP has average profit. high price United has no profit United has average profit (a] What is the dominant strategy for the above matrix (1.e., a Nash equilibrium)? Explain briefly (3 marks] (b] If the two petrol stations could collude, what would be the likely strategy? Explain briefly. (3 marks) (c] Briefly explain the principles of the 'kinked' demand curve by using an example such as pricing a product by the two supermarket giants. (4 marks] For the toolbar, press ALT+F10 [PC] or ALT+FN+F10 [Mac]. BIUS Paragraph Open Sans, sa.. 10pt T