4] limprovement stores (Great Home and Super Home) in a growing urban :erested in expanding their market share. Both are interested in the size of their store and parking lot to accommodate potential growth in ner base. Two possible actions for both the firms are: increase the size of 1d parking lot' and 'do not increase the size of the store and parking lot'. ! defined in terms increase in annual prots in $million. The following table he payoffs for both the firms to alternative actions taken by each of them] increase Do not increase Super Home = $1.0 Super Home = $0.4 increase million million Great Home 2 $1.5 Great Home 2 $3.4 million million Super Home 2 $3.2 Super Home 2 $2.00 . million million increase Great Home = $0.6 Great Home: $2.5 million million elete this table as well from your submitted fe". 3 say, each store is pursuing its own best interest. What will be a rational ominant) strategy for Super Home to follow? Explain in 3-4 sentences. I will be a rational (or dominant) strategy for Great Home to follow? ain in 34 sentences. (2+2 = 4 marks)] at will be the annual profit growth for each store, if they both follow their inant strategy? What is a Nash equilibrium here and why? (Find out the 1 equilibrium using the pay-off matrix as shown above). (4 marks)] lpose the owners of Super Home and Great Home meet for a friendly e of golf one afternoon and happen to discuss a strategy to optimize rth related prot. What should be the joint strategy they should both agree What will be annual profit growth for each store under this agreement? (2