k) There are 2 companies that plan to open a restaurant in Miami. Each can open a high- capacity restaurant or a low-capacity restaurant. The following table gives the payoffs of each company Firm 1 High Firm 2 Low 10:20 100, 50 High 80: 60 30: 25 a) b) c) d) f) g) h) Is there a dominant strategy for Firm 1? Explain. Is there a dominant strategy for Firm 2? Explain. What outcomes are Nash Equilibria, if there are any? Explain. If managers of both firms are conservative and each follows a maximin strategy, what will be the outcome? Explain. What is the cooperative outcome? Explain. Which firm benefits more from the cooperative outcome? At least how much would that firm need to offer the other firm to persuade it to collude? Explain. If Firm 1 threatens Firm 2 by saying that it will choose high capacity whatever Firm 2 does, will this threat be credible? If the threat is not credible what can Firm 1 do in order to make this threat credible? Explain. What will be the outcome if Firm 2 makes the first move? Draw the decision tree and explain the outcome.