Using a payoff matrix to determine the equilibrium outcome

Suppose that Flashfry and Warmbreeze are the only two firms in a hypothetical market that produce and sell air fryers. The following payoff matrix gives profit scenarios for each company (in millions of dollars), depending on whether it chooses to set a high or low price for fryers.

Warmbreeze Pricing High Low High 10, 10 3, 12 Flashfry Pricing Low 12, 3 7, 7 For example, the lower-left cell shows that if Flashfry prices low and Warmbreeze prices high, Flashfry will earn a profit of $12 million, and Warmbreeze will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfry and Warmbreeze are both profit-maximizing firms.If Flashfry prices high, Warmbreeze will make more profit if it chooses a V price, and if Flashfry prices low, Warmbreeze will make more profit if it chooses a price.If Warmbreeze prices high, Flashfry will make more profit if it chooses a price, and if Warmbreeze prices low, Flashfry will make more profit if it chooses a price.Considering all of the information given, pricing high a dominant strategy for both Flashfry and Warmbreeze.If the firms do not collude, what strategies will they end up choosing? O Both Flashfry and Warmbreeze will choose a high price. O Flashfry will choose a high price, and Warmbreeze will choose a low price. O Flashfry will choose a low price, and Warmbreeze will choose a high price. O Both Flashfry and Warmbreeze will choose a low price. True or False: The game between Flashfry and Warmbreeze is an example of the prisoners' dilemma. O True O False