Suppose a town only has two petrol stations, United and BP. Each could choose to charge a high price or low price. as shown in the matrix below. BP charges a low BP charges a high price: price: BP has low United charges a low prot; BP has no prot; United has high prot price: - United has low profit United BP has high BP has average United charges a high prot; PTOt: price: . United has no - United has average prot prot (a) What is the dominant strategy (Le. a Nash equilibrium] for the above matrix? Explain briey. (3 marks) (b) If the two petrol stations could collude. what would be the likely strategy? Explain briey. (3 marks) (c) (This sub-question is not related to the above questions.) Briey explain the principles of the 'kinked' demand curve by using an example such as pricing a product by the two supermarket giants. (4 marks}