In Downtown Tampa, FL, there is an area attached to Hillsborough Bay that is very attractive to travelers, visitors, tourists, etc. As you can see in the following picture, this place is close to downtown, Hillsborough Bay, McKay Bay, Tampa Convention Center, Amalie Arena, and many historical attractions and shopping centers. Picture Source: htlpjtthegalle rystudioscomfreaIestatephotog ra phyir There are only two major hotels ("Embassy Suites\" and "lli'larriot'") in this small area serving travelers, tourists, conference attendees, etc. Assuming that this area is somewhat isolated from other areas in Tampa, and that these two hotels service their own costumers (ie. they service people who are interested in staying only in this area), and that their services are almost identical, these two major hotels are competing in an imperfect-competition form, and as such, their competition can be modeled as a duopoly. The two hotels face a choice as to whether to post high prices for their rooms or low prices. As they encounter a downwardsloping demand curve for their rooms, if they both post low prices, the prot of each hotel will become 12 million dollars a year. If only one posts low prices, it will make 20 million dollars a year (through attracting more costumers and obtaining a higher occupancy rate), whereas the prots of the other hotel will become 10 million dollars a year. If both hotels post high prices, the profit of each will become 16 million dollars a year. Consider the situation described above and complete the following payoff matn'x accordingly, so you can proceed and answerthe questions below. Question 23 12 pts Question 23: What are the actions (i.e. strategies) and payoffs that bring about the best social outcome in this two-member society? O {Low Prices, Low Prices} , {16, 16} O {High Prices, Low Prices} , {10,20} O {Low Prices, High Prices} , {20, 10} O {High Prices, High Prices} , {12,12} O {High Prices, High Prices} , {16, 16} O {Low Prices, Low Prices} , {12, 12} Question 24 12 pts Question 24: Suppose that the market value of each of these hotels is 150 million dollars. Given that the hotels are operating in the Nash Equilibrium, what is the "Rate of Profit" (henceforth, ROP) from this property for "each" of their owners? (Hint: ROP equals the amount of annual profit divided by the market value times 100%. That is, ROP = (Annual Profit / Market Value) * 100%.) O Marriot's ROP = 10.7%, and Embassy Suites' ROP = 8% O Marriot's ROP = 8%, and Embassy Suites' ROP = 8% O Marriot's ROP = 13.3%, and Embassy Suites' ROP = 13.3% O Marriot's ROP = 8%, and Embassy Suites' ROP = 10.7% O Marriot's ROP = 10.7%, and Embassy Suites' ROP = 10.7% O Marriot's ROP = 6.7%, and Embassy Suites' ROP = 6.7%Question 25 12 p Question 25: If the owner of Marriot hotel buys the Embassy Suites and thereby can run this two-hotel market in a monopolistic form, how much would the rate of profit from the already-owned Marriot hotel for the owner become? O 10.7% O 13.3% O 7.6% O 1.3% O 6.7% O 8%