As an economics analyst for your firm (Firm 1), you are considering whether your firm should sell plain or wholemeal bread. You have to contend with a rival firm (Firm 2), who are also making similar plans. The decision will be made simultaneously and both firms are aware of the pay-offs (profits, in millions of dollars), shown in the table below.

	Firm 2
Plain	Wholemeal
Firm 1	Plain	2, 3	5, 7
Wholemeal	5, 2	-2, 3

1. In your research you need to demonstrate the optimal strategy, given the strategy of the rival firm, to your CEO, who is not trained in economics. To do so, you need to demonstrate the Nash equilibrium, and how you derived it. Also clearly state the profits each firm will make in the Nash equilibrium.
2. As a conservative analyst, you also consider the maximin outcome in case the management of Firm 2 behaves irrationally. Indeed, the management of Firm 2 does the same analysis in case the management of your firm (Firm 1) also behaves irrationally. Demonstrate the maximin strategy outcome, and explain your answer

You have explained the Stackelberg Model and the first mover advantage to your CEO, who now thinks it is a good idea to make the first move, and make greater profits than that found in part (a). Using a decision tree to explain your answer, tell us why your CEO is correct or wrong.