(a) (4 marks) Find the Nash equilibrium for this game, if one exists. Explain.(b) (4 marks) Does either firm have a dominant strategy? Explain.(c) (4 marks) Suppose the two firms are now able to communicate with each other. Is there a better outcome they could achieve by colluding with each other? Explain.

Question 2 (12 marks in total) Assume there are two firms (X and Y) and they are considering which of the two alternative prices to charge, a high price or a low price. The decisions are made simultaneously, that is without either firm knowing the choice of its rival. The returns are illustrated in the following pay-off matrix: Firm X Firm Y High price Low price