(b) Two car producers, Firm A operates in Country A and Firm B operates in Country B, are considering producing a new 8-seater MultiPurpose Vehicle (NEPV) for the international market. The payoff matrix is as follows (payoff values are in millions of dollars): Firm A Produce Don't Produce Produce -$5 for each $100 for Firm B $0 for Firm A Firm B Don't Produce $0 for Firm B $0 for each $100 for Firm A The above payoffs imply that the international market demand is large enough to support only one producer. If both firms produce. both will sustain a loss. (i) Explain and solve for the Nash equilibrium in this game. (5 marks) (ii) Suppose the government of Country A decides to subsidise Firm A with $25 million if it produces. Revise the payoff matrix to account for this subsidy. What is the new equilibrium outcome? Compare the two outcomes and discuss the effect of the subsidy. (10 marks)