Q4: 444 Suppose a town only has two (2) petrol stations, United and BP. Each could choose to charge a high price or low price, as shown in the matrix below. United United charges a low price: United charges a high price: BP charges a low price: BP has low profit; United has low profit . BP has high profit; United has no profit BP BP charges a high price: BP has no profit; United has high profit BP has average profit; United has average profit (a) What is the dominant strategy (i.e. a Nash equilibrium) for the above matrix? Explain briefly. TIME (b) If the two (2) petrol stations could collude, what would be the likely strategy? Explain briefly. (c) (This sub-question is not related to the above questions.) Briefly explain the principles of the 'kinked' demand curve by using an example such as pricing a product by the two (2) supermarket giants. (