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Question 5 20 pts Suppose that there are only two manufacturers of pens, Stained Shirts and Ink Rink. Beth can produce either 2 thousand or

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Question 5 20 pts Suppose that there are only two manufacturers of pens, Stained Shirts and Ink Rink. Beth can produce either 2 thousand or 4 thousand packages of pens per day. This yields a total production of 4. 6. or 3 thousand packages of pens per day. At these production levels, prices of pens are $25. $15, and $10 per package respectively. Assume there are no fixed costs for Stained Shirts but fixed costs of 2 for Ink Rink while marginal production costs for Stained Shirts are $4fp ackage and $2J'package for Ink Rink. a} What is the normal form of this game and the resulting NE? h}Assume that Ink Rink and Stained Shirts think that they will be playing each other until the end of time. Show that using a simple trigger strategy can yield a better payoff given a suitable level of patience [also known as a discount factor]. What is this discount factor for each firm? cl Explain whyr it makes sense that one rm has a higher discount factor. NOTE: You are required to show your calculations to receive full credit

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