3. A1 Glass and Crystal Clear are the only two window installers in town. The two firms are each attempting to bring in new clients and they must give these clients a quote on prices without knowing the other firm's prices. Each firm can either tell the clients a "high" price (above $100) or a "low" price (below $100). The two firms both know the following: 1) if both firms quote a "high" price, then each firm will earn $600 in profits 2) if both firms quote a "low" price, then each firm will earn $450 in profits 3) if one firm quotes a "high" price while the other quotes a "low" price, then the "high" price firm will earn $200 in profits while the "low" price firm will earn $750 in profits.

A) Set up the game described above and find the Nash Equilibrium outcome. B) If A1 Glass and Crystal Clear were to form a cartel, what would the outcome of the game be? C) Briefly explain why it is generally considered difficult to hold a cartel together.

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