7. (6 points) Copy to your exam the table of game payoffs below. a. Circle the Nash equilibrium (if any) in the game below. Explain why this is a Nash equilibrium. b. If the firms repeatedly interact there is a mechanism through which they may collude to make more profit. What is it? Firm 1 Not Cooperate Cooperate Not Cooperate II, = 300 II, =250 I12 = 500 I12 = 850 Firm 2 1 =750 II = 500 Cooperate II2 =450 II2 = 650