Hospital B Adopt a robotic surgery machine Do not adopt the machine Hospital A: $100 million Hospital A: $200 million Adopt a robotic surgery machine Hospital B: $100 million Hospital B: -$50 million Hospital A Hospital A: -$50 million Hospital A: $150 million Do not adopt the machine Hospital B: $200 million Hospital B: $150 million Source: Folland, S., Goodman, A. C., & Stano, M. (2016). The Economics of Health and Health Care: Pearson New International Edition. Routledge. Question 1. When both hospitals simultaneously choose their own strategy, find the Nash equilibrium in the simultaneous-move game. (3 points) Question 2. We have learned two lessons in pure competition, oligopoly, monopolistic competition, and monopoly: 1) competition lowers price and increases quantity of goods and services produced in the market and 2) with limited competition, price rises and quantity decreases. Explain whether you agree with the idea that more competition led by adopting a robotic surgery machine reduces the price of medical service in this example. (3 points)