If OPEC consisted of only Saudi Arabia and Nigeria and if they both stuck to an agreement to fix oil prices, then Saudi Arabia would make $100 profit and Nigeria would make $60 profit. If both cheated on the agreement, Saudi Arabia would make $70 and Nigeria would make only $30. If Saudi Arabia cheated and Nigeria did not, then Nigeria would make $25 and Saudi Arabia would make $80. Likewise, if Nigeria cheated and Saudi Arabia did not, then Nigeria would make $75 and Saudi Arabia would make $50.

1. Does either country have a dominant strategy?
2. Does a Nash equilibrium exist in this case? Explain.