Question: upon reading the attached document, please answer the questions. . Game Theory Litlle Kona is a small coffee company that is considering entering market dominated

upon reading the attached document, please answer the questions.

. Game Theory Litlle Kona is a small coffee company that is considering entering market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: Big Brew High Price Low Price Enter $2 million, $3 million = -$2 million, $4 million Little Kona Don't Enter $0, $6 million $0, $3 million True or False: Only Little Kona has a dominant strategy in this game. ) True ( False Which of the following outcomes represent a Nash equilibrium in this case? Check al! that apply. CL) Big Brew maintains 2 high price and Littl Kona enters. L] Big Brew maintains a low price and Little Kona does mot enter. CL) Big Brew maintains 2 high price and Littl Kona does not enter. L] Big Brew maintains a low price and Little Kona enters. Big Brew threatens Little Kona by saying, \"If you enter, we're going to set a low price, so you had better stay out." True or False: Little Kona should beliewe the threat. ) True () False If the two firms could collude and agree on how to split the total profits, what outcome would they pick? ) Big Brew maintains 3 low price and Little Kona enters. ) Big Brew maintains a high price and Little Kona enters. (2) Big Brew maintains a high price and Little Kona does mot enter, ) Big Brew maintains a low price and Little Kona does mot enter

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