Q3. (a) Firm 1 and Firm 2 are operating in the telecommunication industry. Each can choose to go for the high end quality product (HIGH END QUALITY) or the low end quality product (LOW END QUALITY). Profits are given by the payoff matrix below: Firm 2 Low High Low 30, 30 50, 35 Firm 1 High 40, 60 20, 20 (1) What is the Nash equilibrium outcomes if both firms make their decisions at the same time and follow maximin (low-risk) strategies? (15 marks) (ii) If the managers of both firms are conservative and suppose both firms try to maximize profits, but Firm A has a head start in planning, and can commit first. Now what will the outcome be? What will the outcome be if Firm B has a head start in planning and can commit first? (15 marks) (iii) Explain how Nash equilibrium differ from a game's maximin solution? When is a maximin solution a more likely outcome than a Nash equilibrium? (10 marks) (b) Provide 4 items are sold by firms in perfect competition. Explain your selections. (10 marks)