12 You started a small business in your neighborhood street corner. Soon you found out another person has also started a small business exactly like yours. You hired a business consultant to advise what to do. After some study, the consultant described thei situation to you: If you cut your price while your competitor maintains the same price, then you will increase your market share by 20%, thus making $1,000 more per month than you did before. However, your competitor will thus lose the market share and making $1,000 less than before. On the other hand, if both of you maintains the same price, then neither of you will increase the market shar, therefore, both of you will make the same amount of money as before. However, if both of you decided to cut your prices, then your market shares will remain the same, but because of the price cut, both of you will loss $500 per month. Your consultant also informed you that your competitor has also retained a consultant as well. Due to a policy from the City government, you can t talk to your competitor to settle on an agreed-upon price for price fixing. So what should you do? To cut the price no matter what To maintain the price no matter what Either cut the price or maintain the price will maintain the status quo, thus the same amount of profit Either cut the price or maintain the price will maintain the status quo, thus increasing the profit QUESTION 13 (Bonus) Follow up on the previous question, from the point-of-view of Prisoner's dilemma, what is the "punishment" in this case? Making $1,000 more per month Losing $1,000 more per month O Losing $500 more per month Having the same profit per month O Going to jail for violating the anti-price-fixing policy