7. {10 pts.) Sony and LG are competing on the newest version of HD TVs. Two pricing strategies exist: price high or price low. The profit from each of the four possible combinations of decisions is given in the following payoff matrix: LG '5 price High ($4000) Low ($2000) High 5: 510,000,000 5: $4,000,000 ($4000) LG: $10,000, 000 LG: 51 6, 000, 000 Sony's . Price 5: $16,000,000 5: $4,000,000 Low ($2000) LG: 54, 000,000 LG: 54, 000, 000 Payoffs in dollars of prot. a) (2 pts.) Which strategy offers both Sony and LG the best combined financial outcome? b) (2 pts.) Does either firm have a dominant strategy? If yes, which firm and what strategy? c) (4 pts.) The Nash equilibrium is for LG to set its price at and earn a profit of and for Sony to set its price at and earn a profit of d) (2 pts.) Why do we see that the strategy that results is not the strategy that offers both players the best financial outcome