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1. Finding Strategic Equilibrium Two firms compete in the following one-shot strategic interaction. Each firm ca of three possible prices, $10, $20, and $30. The

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1. Finding Strategic Equilibrium Two firms compete in the following one-shot strategic interaction. Each firm ca of three possible prices, $10, $20, and $30. The payoff matrix generated by sud given below. In each call, the left number represents the payoff to Firm B and th the payoff to Firm A. Firm A Price 10 20 30 10 (60,40) (66, 40 ) (80.20) Firm B Price 20 (40 ,50) (70,70) (100, 40) 30 (20,80) (40, 100) (90,90) The two firms simultaneously choose their prices, and they act rationally (and other acts rationally) in order to maximize their profits. (a) (3 points) Identify any and all Nash equilibria of this strategic interaction. a clear explanation for your answer using text and/or tables as you see fit. (b) (4 points) What is your prediction for the prices that the two firms are mo Again, please clearly explain your rationale, using text and/or tables as yo

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