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Kola and Super Kola are the only juice bars in a sub-urban town in Utopia. Both of them are interested in finding strategies to increase

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Kola and Super Kola are the only juice bars in a sub-urban town in Utopia. Both of them are interested in finding strategies to increase their profits. They are currently deciding on whether advertising or not advertising is the better strategy for them. The estimated profits of the two stores if they advertise or not advertise are shown in the following matrix. Super Kola [Adwrie | DonoiAdverie Advertise Super Kola=$350 Super Kola= $225 Do not advertise Super Kola =$ 1,350 | Super Kola =525 Kola = $275 =Kola = $775 a. What would be the profits of Super Kola if both stores follow a dominant strategy? (0.5 mark) b. What would be the profits of Kola if both stores follow a dominant strategy? (0.5 mark) c. Assuming that it is legal in Utopia to enter into collusive agreements, and assuming that Kola and Super Kola enter into an agreement that both of them would be better off, what is the risk that each party Is running? Explain your answer using information from the matrix

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