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Question 1 (10 Marks) Consider the following game. Firm A and Firm B are the only two producers of fresh milk, A new product; fresh

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Question 1 (10 Marks) Consider the following game. Firm A and Firm B are the only two producers of fresh milk, A new product; fresh milk with dates is designed to displace fresh milk. Each firm has to choose a strategy of either to LIMIT or EXPAND the fresh milk with dates production. The payoff matrix shows the revenue of each strategy. Firm B Limit Expand Firm A Limit RM100, RM100 RM-50, RM150 Expand RM150, RM-50 RMO, RMO Based on the payoff matrix above: a) by using a decision tree flowchart explain how the Nash equilibrium is obtained by taking into account the concepts dominant strategy. (6 marks) b) state the Nash equilibrium in this game theory. (2 marks) c) briefly, explain whether this game has similarities to the concept of the prison dilemma. (2 marks)

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