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Right answers please Check my 10 Assume that the only two firms in the industry, Sundance Inc. and Moondance Lid., have entered a collusive agreement

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Right answers please

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Check my 10 Assume that the only two firms in the industry, Sundance Inc. and Moondance Lid., have entered a collusive agreement to reduce their advertising budgets to a minimum. The result is that they expect to make profits of $100 million each. However, if either of them cheats, the cheater will increase its profits by $20 million at a cost of $20 million to the other firm. If they both cheat, they will each Skipped reduce their profits by $10 million. Moondance Stick to agreement Cheat on agreement eBook Cell A Cell B Stick to Moondance : Moondance : agreement Sundance: Sundance: Sundance Cell c Cell D Cheat on Moondance: Moondance : agreement Sundance: Sundance: a. Complete the matrix by using the table above which shows the options facing the two firms. b. Which cell will be the likely outcome? They will chose option (Click to select) v

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