micro frq help

Rick's Bakery Enter (blue) Stay out (blue) Kevin's Cakes Advertise (Red) 100, -4 350 0 Don't Advertise (Red) 300, 30 200. 0 Kevin's Cakes is currently the only cake maker in town. It can either advertise or not advertise. Rick's bakery is contemplating whether to enter or stay out of the market. Each bakery establishment independently and simultaneously makes its decision. (a) What actions maximize the combined total profits for Kevin's Cakes and Rick's Bakery? (b) Conditional on your response in part (a), does either Kevin's Cakes or Rick's Bakery have an incentive to cheat on this combination of actions that maximize the combined total profits? Explain using numbers from the matrix for each pizzeria. (c) Does Kevin's Cakes have a dominant strategy? (d) Identify the Nash equilibrium or equilibria actions for this game. (e) Ignoring antitrust considerations, suppose that Kevin pays Rick's Bakery $40 if Rick chooses to "Stay Out." . (1) Redraw this matrix including players, actions, and payoffs, showing how Kevin payment to Rick affected the payoffs. (11) Identify the Nash equilibrium for the redrawn matrix