Exercise 2. Markets for aircrafts Airbus (a European firm) and Boeing (an US firm) are competitors in the market for aircrafts. The demand for aircrafts has gone down significantly in recent times - in fact, so much so that only one player can profitably operate in the market. If both stay in the market, each loses $5 million. If both exit the market each gets 0, where as if one stays and one exits, the one who exits gets 0 while the one who stays bags $100 million. (i) Identify the set of pure strategies for each player. (ii) Write down the normal form game and the associated payoff matrix. (iii) Compute the set of pure strategy Nash equilibria. Now suppose the European government announces and credibly commits to $6 million subsidy for e Airbus, contingent on Boeing not exiting. That is, Airbus will receive $6 million as long as it remains in the market[note: this means $6 million gets added to Airbus's profit/loss figures stated above provided it stays]. How does this affect your answers to (ii) and (iii)