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Question 7 Consider two hypothetical firms: Netex, considering an investment on developing an electric vehicle; and Plugcar, looking into the protability of building charging stations for electric vehicles. Each firm has two possible strategies: 'Innovate' and 'Do not innovate'. If both firms decide to innovate, the payoffs are high because electric vehicles and charging stations complement each other. If one firm innovates and the other does not, the former experiences a loss because the innovation cannot be protable without the other. The matrix below describes the hypothetical payoffs. Innovate Do not innovate 1.0 0 Innovate E u on :' Ca. Do not innovate Find the Nash equilibrium(s) of this game. Provide your reasoning by referring to the payoff matrix above. Your reasoning must include the best responses of each firm. Question 8 Keep considering the same game and the payoff matrix from the previous question. Discuss whether the game between Netflex and Plugcar is an invisible hand game. Your discussion must start by explaining what an invisible hand game is. Question 9 Discuss how the incentives for firms to innovate (or invest on R&D) are related to the degree of product differentiation. Your discussion must refer to the notion of market power. There is no need to refer to the payoff matrix from the previous questions