2. Consider two countries producing a natural resource. Country A has far more reserves and is the lower-cost producer compared to country B. The payoff matrix below shows the prots earned per day by each country. "Low output" corresponds to producing the cartel quota and "high output" corresponds to producing the maximum capacity beyond the agreed quota. _-_ Low Output A: 120 A: 75 B: 20 B: 12 Country B High Output A: 80 A: 60 B: 30 B' 10 a) Does either player have a dominant strategy? If so, explain what it is and why. [7 marks] b) Again with appropriate discussion, explain what is the Nash equilibrium of this game, if each country has to make its decision without knowing the decision of the other country. [8 marks] c) What share of profits could country A offer to country B to induce it to produce the lower level of output? Would this outcome be stable? [10 marks]