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The market concentration of Country A's grocery retailers is the stuff of legend: two great houses, Supermarket "C" and Supermarket "W". These rivals are locked in struggle but neither takes much in the way of damage. It has been extremely tricky to avoid these two. Country A's citizens have no alternative but to choose between Supermarket "C" and Supermarket "W". Although, there are numerous supermarket chains in Country A, Supermarket "W" and Supermarket "C" take up 82% of the total market share. Q 4. a (1 marks) In your opinion, what type of market structure does Country A's supermarkets operate in? Justify your opinion. Refer to the following matrix below. Two non-collusive Supermarket "C" and Supermarket "W" are playing a game where they have to choose whether to offer "Discount" or "No Discount" prices for their grocery. The outcomes of their profit (in $M) are summarized below. Supermarket "C" XXXXXxxxx Discount No discount Supermarket "W" Discount 120, 120 100, 150 Not discount 150, 100 160, 160 Q 4. b (3 marks) Is this a case of 'Prisoner's Dilemma"? Explain. Q 4. c (2 marks) Assume that the government changes the competition rules and allows supermarkets to merge. Critically compare a collusive oligopoly market structure with a competition market in terms of price and output. Q 4. d (1 marks) A price war broke out between the two supermarkets. Milk prices fell by 20% and milk demand has risen by 16%. Calculate the price elasticity demand of milk. What type of price elasticity does milk demand have? Q 4. e (3 mark) Based on your analysis in Q 4.d, would you advise milk producers to increase or decrease milk prices, given that milk producers are profit maximisers? Would the demand curve be relatively steep or flat