(10 points) Last year, a Columbus appliance store called American Freight advertised the following Lowest Price Guarantee: "We will NOT be undersold! We'll beat any price! Shop with confidence that you are getting the lowest price - PERIOD! If you find a lower price within 14 days of purchase, we'll not only match it, we'll beat it!" The details of the advertisement states that they will sell you a piece of furniture that is identical to one you see advertised by a competitor, at a price 5% below the competitor's advertised price. Most economists believe that this not such a great deal and is in fact an attempt to collude with its competitors in a repeated game. Explain why this may be an accurate description of American Freight's intentions. What type of repeated game strategy does this tactic resemble? It is possible that American Freight's competitors may still choose to lower price in an attempt to increase their sales quantities. List at least two assumptions the rival firms may make that would convince them that undercutting AF might be successful