Mako and Productux are the only suppliers of the good Balora, a good with no substitutes. The following payoff matrix shows the estimated profits if each company advertises or not.

Productux

Advertise Not Advertise

Mako Advertise $50, $55 $25, $75

Not Advertise $75, $25 $20, $15

1. Does Mako have a dominant strategy to advertise, not advertise, or no dominant strategy?
2. Does Productux have a dominant strategy to advertise, not advertise, or no dominant strategy?
3. Identify any Nash equilibrium the payoff matrix.
4. Advertising costs decrease by $30. Draw a new payoff matrix reflecting the change.
5. Assuming no cooperation, what will the profit be for each company after the decrease in advertising costs?