Question 5 a) Consider the following game with the payoff matrix for an oligopoly consisting of two firms, Company A and Company B: I Company B L M H L A win $4,500 A win $3,000 |A win $2,000 B win $4,500 B win $3,000 |B win $2,000 Company A M A win $1,000 A win $2,000 | A win $4,000 B win $5,000 B win $4,000 B win $8,000 H A win $2,000 A win $1,000 |A win $2,000 B win $1,000 B win $2,000 B win $1,000 i) Both A and B have three moves. Suppose there is no collusion between them, does A or B have dominant strategies? If so, what are their dominant strategies? (6 marks) ii) What is(are) the Nash equilibrium(equilibria) in this game? (6 marks) b) If a market is contestable, how does the equilibrium differ from that of a monopoly? (6 marks) c) What are resale price maintenance, tying arrangements, and predatory pricing? (9 marks) d) Explain what a cartel is and the difficulties faced in maintaining a cartel. (6.3 marks)