3. You begin baking bread and need to decide whether to price them at $2.00 a loaf or $3.00 a loaf, while your competitor does the same. The marginal cost of bread is $1.00 per loaf. If you each price at $2.00, you each sell 50 loaves. If you each price at $3.00, you will each sell 40 loaves. However, if one of you prices at $2.00 and the other at $3.00, the one who prices lower will sell 90 loaves and the one who prices high will sell 10 loaves. a. Construct a payoff matrix that shows the profit you can expect to earn based on your pricing strategy. b. What is the Nash equilibrium of the payoff matrix above? Is this one that you would agree to if you and your competitor could collude? c. How could you get your competitor to agree to set the price you want them to without fearing they cheat or violating anti-trust laws