In oligopoly markets, firms must take each other's decisions into account. The payoff matrix below shows the payoffs for two competitors, Toyota and General Motors, for entering the electric vehicle market in Latin America. The figures in the payoff matrix are in millions of dollars

a) Using the information in the payoff matrix below, what is the optimal decision for both firms? Toyota Enter Do not enter GM Enter -40, 10 200,0 Do not enter 0,250 0,0 b) Brazil is the largest market in Latin America. Suppose General Motors lobbies the Brazilian government for a subsidy amounting to 50 million dollars payable on the firm's entry into the market. How does this subsidy affect the entry decision for both firms? Toyota Enter Do not enter GM Enter 10, 10 250,0 Do not enter 0,250 0,0