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1. Consider the following game between H&R Block and Iprbotagg, Each faces a choice for the next year to develop a simple tax program or

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1. Consider the following game between H&R Block and Iprbotagg, Each faces a choice for the next year to develop a simple tax program or a comprehensive one. The matrix below shows the prots for each rm for different combinations chosen. H&R Block Simple Comprehensive krypton. Simple Profits T: 120 Profits T: 110 Prots H: 50 Profits H: 200 V W ' Comprehensive Prots T: 220 Profits T: 50 Prots H: 80 Profits H: 100 a. Does either firm have a dominant straitggv? b. Identify the Nash Equilibrium of this game if any exist. 2. Consider the following game between two car companies. Each faces a choice for the next year to produce either a big SUV, or a small car. The matrix below shows the prots for each rm for different combinations chosen. Firm 2 Small Car suv Profits 1: one Pmts2: #00 :mnm: 1m SmallCar Profits 1: 1009 P: 21' 500 "1.300.. ' Pram: 2=50 a. Does either rm have a dominant strategy? h. identify the Nash Equilibrium of this game if any exist

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