3. Firm 1 and firm 2 are automobile producers. Each has the option of producing either a big car or a small car. The payoffs to each of the four possible combi- nations of choices are as given in the following payoff matrix. Each firm must make its choice without knowing what the other has chosen. (L02, L04) a. Does either rm have a dominant strategy? b. There are two Nash equilibria for this game. Identify them. Firm I Big car Small car Big car P| = 400 FI = 800 P2 = 400 P2 = I000 Firm 2 Small car PI = I000 PI = 500 P2 = 800 2 = 500