It's the last two that I have left for firm x strategy and firm y strategy.

3.5.1. The two firms have a strong incentive to collude and adopt the high-price strategy because there is the potential for $ million more in profit for the two firms than with a low-price strategy (Situation 4), or the potential for $ million more for the two firms than with a mixed-price strategy (Situations 2 or 3). 3.5.2. There is also a strong incentive for each firm to cheat on the agreement and adopt a low-price strategy when the other firm maintains a high-price strategy because this situation will produce $ million more in profit for the cheating firm compared to its honoring a collusive agreement for a high-price strategy