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QUESTION 2 10 points Two firms (A and B) compete in the tablets industry. Each firm has two possible strategies: low price or high price.

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QUESTION 2 10 points Two firms (A and B) compete in the tablets industry. Each firm has two possible strategies: "low price or "high price". PA and PB are the probabilities attached to the strategy "low price for firm A and Firm B. (1 - PA) and (1 - PB) are the probabilities attached to strategy "high price for Firm A and Firm B. Firm B Low price (10,-10) High price (-10,10) Firm A PA Low price High price (-10,10) (10,-10) 1 - PA PB 1 - PB . What is/are the pure strategy Nash equilibrium (or equilibria)? (5 points) Is there a mixed strategy Nash equilibrium? (5 points)

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