2. Suppose two oil-producing countries, Country A and Country B, in a $4 bil. market are interested in forming a cartel with the goal ofcolluding- a signed agreement to raise oil prices (and profits) by limiting quantity supplied to a low level. Suppose, in each play of the game, their individual options are either tocollude (Co)-- stick to the low quantity agreement -- or tocheat (Ch) --and produce a high quantity, flooding the market and capturing all profits. The matrix form is shown in the following figure:

Country B Co Ch Co $2,$2 0,$4 Country A Ch $4,$0 $1,$1