3. Two rms, the only rms in the market, sell the same product and have the same marginal cost. They realise they would be better off ifthey didn't compete with each other. They enter an alternating offers bargaining game to decide how they will divide the monopoly prot. l'l. They have three periods to come to an agreement. If no agreement is reached after three periods, the rms will compete simultaneously in prices. The rms toss a coin to decide who makes the rst offer in the bargaining game. Firm 1 wins and decides to go rst. Each rm has a discount factor 6. a) Draw the game tree. b) What is the subgame perfect equilibrium when 6 = 0.5? c) What is the equilibrium payoff for each rm? d) Was Firm '1 wise to opt to make the rst offer? Explain your