1. Two firms can perform joint research on two products, a fancy,r one and plain one, and each make a prot of three million. Firm one has the opportunity to make an offer to firm two regarding the project as its facilities are set up and its staff is hired. If the firm one decides to tell firm two it has no interest in doing business with it, both firms must decide to research the fancy product or the plain product. {N either firm has the capacityr to research both alone.) The payoffs in this second round decision making are as follows (in millions): 2