1. Consider the following price game: Firm 2 High Low _ High 12, 24 Firm 1 Lover 14, 14 Remark: In simultaneous move games (games with rows and columns) the convention is to write the row player's payoff rst and the column player's payoff second. (a) What is the Nash equilibrium of this game? Recall that for each player you should nd the best response to each of the opponents' strategies and underline the associated payoff. Then look for a cell Where both strategies are best responses to each other (a strategy is a best response if, holding the rivals' strategies xed, it gives the player the best payoff). This is a Nash equilibrium. (b) Does either rm have a dominant strategy (a strategy that is always a best response regardless of which strategy the rival plays)