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Don't get these questions!' Please help!! Thank you Two major media streaming services, Intermovies and Walter X, are considering whether to maintain or increase their

Don't get these questions!' Please help!! Thank you

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Two major media streaming services, Intermovies and Walter X, are considering whether to maintain or increase their monthly subscription rate. Since a significant percentage of their customers will sign up for a whole year, they will be unable to change their rates for at least a year once they set them. The relevant payoff matrix appears below for their daily profits. Walter X Maintain Increase Maintain $1,200, $900 $900, $800 Intermovies Increase $950, $1,150 $1,100, $1,000 a) Does Walter X have a dominant strategy? Explain, (b) Are Intermovies and Walter X likely to have many other competitors? Explain. c) If Walter X decides to maintain its monthly subscription rate, what is the better price move for Intermovies? (d) What might preserve the superormal profits of Intermovies and Walter X in the long run? (e) What is the profit of each firm in any Nash equilibrium/equilibria? (f) A new Federal Trade Commission tax regulation will cost each firm $100 per day if the firm increases its subscription rate, Draw a new payoff matrix to reflect this tax (g) What are Intermovies' and Walter X's dominant strategies (if any) after the tax? i. Intermovies it. Walter X (h) if the firms do not cooperate after the tax and act simultaneously, what will their new profits be

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