1. Solve the following problem where two firms are deciding whether to cooperate or deviate from cooperation. Reach Nash equilibrium through strictly dominated strategies. What is the first strictly dominated strategy?
2. Once this first strictly dominated strategy is eliminated, what is the 2nd strictly dominated strategy?
3. What is the Nash equilibrium of the payoff matrix? (the strategy on the left is that of player 1 and the one on the right is that of player 2)