Firm 1 and firm 2 are automobile producers. Each has the option of producing either a big car or a small car. The payoffs to each of the four possible combinations of choices are as given in the following payoff matrix. Each firm must make its choice without knowing what the other has chosen.

Firm 1 Big car Small car Big car 1 400 1 800 2 400 2 1000 Firm 2 Small Car 1 1000 1 500 2 800 2 500

a. Does either firm have a dominant strategy?

b. There are two Nash equilibria for this game. Identify them.