At the end of 2020, Ford Motors introduced an electric car that analysts predicted could finally rival Tesla's widely popular electric vehicles.So far, Tesla has essentially held the electric vehicle market in monopoly. Ford is trying to figure out how to price their car, the Mustang Mach-e.In the Excel attached, see the analysis done by Ford showing their and Tesla's expected profits (shown in millions $) for different price points.

a)Given this profit information, show Telsa and Ford's dominant strategies (e.g., at each price point of their competitor, what is the profit-maximizing price point for them).

b)Based on the dominant strategies, what do you predict the equilibrium price for the Tesla car and the Mustang Mach-e will be?

c)Is this a stable or unstable equilibrium? Explain your rationale.(Hint: is there some other price points at which both Tesla and Ford are better off? But what would happen if the companies chose those prices?)

-1287 0 0 0 1421 892 $50,000 -5073 517 4107 5698 6802 10109 -1391 82 109 2345 3191 4347 $45,000 -5823 -4123 5769 8903 14244 1223 -2901 103 4210 2794 8532 3592 SUGGESTED PRICE OF MUSTANG MACH-E $40,000 -1234 128 385 10213 12042 1002 -2014 190 6934 7213 9021 3204 $35,000 -1892 145 1156 9923 1555 98 -1024 -782 7682 8739 1495 2937 $30,000 -1987 803 10294 7213 4321 50 -902 -812 192 504 245 1244 $25,000 -1023 890 5021 1231 648 21 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 PRICE OF A TESLA MODEL Y