(2) For the following game, use iterated elimination of strictly dominated strategies. Is there a unique equilibrium? If so, state and show the equilibrium? If not, explain and show why. Firm 2 High Price Med Price Low Price High Price 4,3 1,2 0,4 Firm 1 Med Price 3,0 3,1 1,1 Low Price 4,-1 3,1 2,1 There is no unique equilibrium in this game using iterated elimination of strictly dominated strategies. For firm 2, high price is strictly dominated by low price. Firm 2 will never adopt high price as a strategy and therefore, we eliminate it. However, no other strategy for both firms can be eliminated due to strict domination. For firm 1 Comparing high price and med price (4>3) (1