Refer to the following matrix below. Two non-collusive aircraft manufacturers, Boeing and Airbus, are playing a...

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Refer to the following matrix below. Two non-collusive aircraft manufacturers, Boeing and Airbus, are playing a game where they have to choose whether to cut or raise prices for the aircraft they produce. Their profit outcomes (in $B) are summarised below. Airbus Cut price Raise price Cut price 50, 50 125, 45 Boeing Raise price 45, 125 95,5 Questions 1. What is each player's dominant strategy? Explain your reasoning. [2 marks] 2. Is there a Nash equilibrium? If so, what is it? [2 marks] 3. Is this an example of a prisoner's dilemma game? [2 marks] 4. State two types of cooperative oligopoly. [2 marks] 5. State four types of non-cooperative oligopoly. [2 marks] Refer to the following matrix below. Two non-collusive aircraft manufacturers, Boeing and Airbus, are playing a game where they have to choose whether to cut or raise prices for the aircraft they produce. Their profit outcomes (in $B) are summarised below. Airbus Cut price Raise price Cut price 50, 50 125, 45 Boeing Raise price 45, 125 95,5 Questions 1. What is each player's dominant strategy? Explain your reasoning. [2 marks] 2. Is there a Nash equilibrium? If so, what is it? [2 marks] 3. Is this an example of a prisoner's dilemma game? [2 marks] 4. State two types of cooperative oligopoly. [2 marks] 5. State four types of non-cooperative oligopoly. [2 marks]