Boeing Corporation and Airbus Company are two companies that compete in the production of passenger jet aircraft. They have the option of increasing or not increasing R&D (research and development). The following is the change in profits in millions of dollars:

(The table is attached as a screenshot)

Given that this is an oligopolistic industry with each firm closely monitoring the other's predicted strategy, answer:

a)What is the most likely outcome? Explain the reasons briefly. In your response, you may use the concept of the "prisoner's dilemma."

b)Would the outcome be different if this R&D game was repeated every year?

Profits for Airbus Company (A) Increase its R&D Not increase its R&D Increase its R&D B: $30 m B: $80 m Profits for Boeing Corporation (B) A: $30 m A: - $20 m Not increase its R&D B: - $30 m B: $30 m A: $90 m A: $40 m