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23 10 B23) Two companies need to decide if competing or colluding. The following game shows their profits' distribution. Company 2 collude compete Company 1

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10 B23) Two companies need to decide if competing or colluding. The following game shows their profits' distribution. Company 2 collude compete Company 1 collude $225 / $225 $188 / $250 compete $250 / $188 $200 / $200 5 a) What is the Nash Equilibrium of this oligopolistic game? b) Is the Nash Equilibrium Pareto Efficient? 5

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