8.LuLu Restaurant (LR) and Lucy Caf (LC) have an implicit agreement to keep prices high so that both can earn $30,000 profit a year. Below is their complete payoff matrix in terms of thousands of dollars of profit per year and strategic actions a and b. LR's payoffs are the left and LC's are on the right. However, in 2014 new owner/managers have taken over both LR and LC and have to decide whether to abide by the implicit agreement or to cheat.

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