$($Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers$)$ Payoff Matrix for Firms X and Y$.$ If Steve and

Savannah wish to maximize their joint profits:

each firm should choose to cooperate.

Savannah should choose a best response, and Steve should not.

each should consider its specific situation before choosing a strategy, since strategies also entail costs.

each should choose a strategy opposite the other's choice.