Problem 5 (10 marks) Suppose that Boeing and Airbus are the only two firms that can produce a particular type of aircraft. Each has the choice of producing or not producing it. The profits (in millions of dollars) for each firm are as follows, where profits are listed for Boeing first, before the comma, and Airbus second: Airbus Produce Don't Produce Boeing Produce 10,-40 250,0 Don't Produce 0,200 0,0 where the first number refers to Boeing's profits and the second number refers to Airbus's profits. Boeing developed this type of aircraft first, and so it can make the first move. a. What is the Nash equilibrium of this game? b. Suppose the European governments commit themselves to pay Airbus a subsidy of $50 million if it produces the aircraft. What will be the outcome now? C. Will the subsidy discourage Boeing from producing the aircraft? Are there conditions under which your answer would change? Briefly explain