Question 1 4 pts large $10B, $20B flagship small - Microbiz $20B, $10B no campaign $40 B, $0B large $0B, -$5B budget small Techcorp Microbiz $5B, $10B no campaign $30B, $5B no launch $20B, $40B Techcorp manufactures mobile devices (smartphones and tablets). The company is considering launching a new phone. Techcorp can choose to launch a flagship phone, to launch a budget phone, or to have no launch. Techcorp's main rival is Microbiz. If Techcorp launches a new phone, Microbiz can respond with a large advertising campaign, with a small advertising campaign, or with no campaign at all. This sequential moves game is illustrated in the figure above. On each branch of the game tree, the first listed payoff belongs to Techcorp, and the second listed payoff belongs to Microbiz. Use the information provided to answer the following questions: i. The sequence of actions [ Select ] delivers Techcorp the highest profit. ii. If Techcorp launches a flagship smartphone, Microcorp's best-response is [ Select ] iii. If Techcorp launches a budget smartphone, Microcorp's best-response is [ Select ] iv. Using backward-induction, we would expect the outcome of the game to be [ Select ]Question 2 4 pts Svetlana Cakes Danishes Slices 13 14 10 Brazil 6 4 9 16 17 11 Ingo Ecuador 7 5 1 12 11 8 Timor 3 2 6 Ingo owns and operates a coffee cart. Close by, Svetlana has a bakery. Every day the two small-business owners must decide what products to sell. The profits of each business depend on the choices made by both businesses because some consumers like to combine the purchases of products that they view as complements. The choices available to the two small-business owners are as follows: Ingo can sell single-origin coffee from Brazil, Ecuador or Timor. Svetlana can bake Cakes, Danishes, or Slices. This simultaneous moves games is illustrated in the payoff matrix above. The payoffs are stated in thousand of dollars. Use the information above to answer the following questions: i. Svetlana's best-response to Ingo choosing to sell Ecuadorian coffee is to sell [Select ] ii. Which player(s) have a dominant strategy? |[ Select ] iii. In the Nash equilibrium of this game Ingo chooses to sell [ Select ] iv. In the Nash equilibrium of this game Svetlana chooses to bake [ Select ]