Question: The table below represents the payoff matrix for two firms, X and Y, that compete with each other. Payoffs are in millions of pounds profit.

The table below represents the payoff matrix for two firms, X and Y, that compete with each other. Payoffs are in millions of pounds profit. Each firm may choose one of two strategies i.e. set a high price for its output or set a low price for its output. Neither firm knows what strategy the other will adopt. The first payoff in each cell refers to the row player, player Y and the second payoff to the column player, player X.

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