QUESTION 5 Anheuser Busch Inbev and MillerCoors control 80% of the American beer market. The two rms were originally in a price war prior to 2008. The two firms attempted to cut their prices to gain control of a larger share of the market. However, after the Global Recession in 2008, the price of their beer has risen. Answer the following questions: a. When considerin whether to raise their prices, MillerCoors must consider Anheuser's actions. Is this feature known as interdependence? b. The two companies are deciding whether or not to introduce a new wheat beer into the American market. The payoff values (in millions of dollars) below represent the expected rst year economic profits from each strategy. What will be the resulting first year payoff be for MillerCoors (the left player) after playing the game? $l . Answer in millions of dollars {i.e. a value shown in the table, with no decimal places, $ sign, spaces or commas). ' Introduce the Beer Does not introduce Introduce the Beer - 10, 45 400 Does not introduce 0, 85 0'0 c. The payoff matrix values reveal a clear distinction between (perfect competition and this beer market. Unlike in a perfectly competitive markets. can the beer producers in this market earn economic profits? . Type onrYes or N for No