2. Consider two competing firms that each have the choice between two strategies: setting the joint-profit maximizing price (i.e., cartel price) or setting the price equal to marginal cost. When firms "collude," they both set the cartel price, when firms "defect, they both set P=MC. The payoffs of each firm are given in the payoff matrix below. Firm B a. Do firms have a dominant strategy in this game? If so, what is the dominant strategy for each firm? b. Suppose the firms play 10 rounds of a game where firm A uses the tit-for-tat strategy and firm B uses the "detective strategy." The detective strategy works as follows for firm B. First, I analyze you, i.e., first 4 rounds: Collude, Defect, Collude, Collude. If you cheat back (cheat in any of the first 4 rounds), I continue with tit-for-tat. If you never cheat back, I continue with the dominant strategy (to exploit you!). What is the outcome (total payoffs) of each firm at the end of the game? Fill the table below (or a similar one)