Supersubs and Hotwich are the only two sandwich shops in town. They have differentiated their products so that Supersubs sells cold sub sandwiches and Hotwich sells hot sandwiches. At any given time, however, Supersubs could expand its selection by purchasing a toaster and Hotwich could also easily start offering cold sandwiches. Refer to the game for the expected payoffs of their possible choices. a. What is the unique equilibrium outcome for a one-time game? The equilibrium outcome is Sell hot sandwiches only Hotwich Expand selection Supersubs Sell cold Expand sandwiches only selection A. r A B $12 $18 $10 $2 C D $2 $5 $19 $6 D b. Suppose now that this is an innitely repeated game. A consultant with a business degree advises Supersubs to expand its selection to increase prots. Another consultant with an economics degree argues against this strategy. Why is the economist likely to have the stronger argument? The economist's argument is stronger because 0 a repeated game means expectations of reciprocity can achieve the higher payoffs from cooperation. O outcome A is the most equitable outcome. 0 the threat by Hotwich to expand its selection is not credible. O outcome A is not sustainable in a repeated game under any circumstances