Consider a bottled water market in which only two firms are operating: Canyon Water and Lake Water.Assume zero cost to produce bottled water.The market demand is given by the following schedule.

Price / Quantity

0 / 30

5 / 25

8 / 20

15 / 15

20 / 10

25 / 5

40 / 0

(1)Construct a payoff table and find a Nash equilibrium from the table.

(2)Construct a prisoner's dilemma scenario with a block of four payoff cells from the table.