Suppose that Panasonic and Zenith are the only two firms that can produce a new type of 3D TV. The payoff matrix shows the firms' profits (in millions of dollars):

a. If both firms move simultaneously, does either firm have a dominant strategy? Explain.
b. What are the Nash equilibria given that both firms move simultaneously?
c. The U.S. government commits to paying Zenith a lump-sum subsidy of $50 million if it enters this market. What is the Nash equilibrium?

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Panasonic Enter Do Not Enter -40 Enter -40 250 Zenith 250 Do Not Enter