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Firm V and Firm Z are engaged in a product design game.The game is a simultaneous, noncooperative, one-shot game. Firm V has three possible design

Firm V and Firm Z are engaged in a product design game.The game is a simultaneous, noncooperative, one-shot game.

Firm V has three possible design strategies:Beaded, Plated, or Mixed.

Firm Z has two possible design strategies: Contoured or Rough.

The payoffs for each possible outcome are:

Firm VFirm Z

Firm V Beaded, Firm Z Contoured4534

Firm V Beaded, Firm Z Rough3736

Firm V Plated, Firm Z Contoured4641

Firm V Plated, Firm Z Rough3552

Firm V Mixed, Firm Z Countered5329

Firm V Mixed, Firm Z Rough3938

A.(8 points)Explain why the combination Mixed and Rough is probably the outcome for this game.

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