Deiter and Brendan are competitors in the nutmeg industry which is very small since nutmeg originates from two islands. The market demand for nutmeg is P = 300 - Q and each of them has a MC-AC-$60. Occasionally, over glasses of Sky, they mull over their competitive environment. Their chief strategists each have come up with a payoff matrix which would give each competitor an idea of how each would fare if they were to collude, operate as Cournot competitors or engage in a Stackelberg first mover strategy. but of course, they have not shown it to each other so it looks like this: Deiter's quantity Brendan's quantity Industry Quantity Price Deiter's profit Brendan's profit Industry profit Monopoly Cournot oligopoly Stackelberg a. Fill in the blanks for this matrix and note which strategy would be best for each firm. Make sure you can show your work as all involved are very suspicious. b. Samuel, a regulator inspecting Deiter's firm, imposes a fixed cost on operations in the amount of $1000. Does this affect which strategy Ethan's firm will use? c. Siyi, a quiet bystander, suggests everyone would be better off if they engaged in price variation(instead of quantity variation), and notes that everyone (meaning society) would be better off. Why? What would be the price and quantity in such a situation? (Note: Think what the italics means, and don't drink Sky while completing this exam although John's company would love it if you did!)