Suppose that Boeing and Airbus are the two main aircraft manufacturers. For the sake of simplicity, we assume that each firm has the choice between two strategies: producing a narrow-body aircraft or producing a wide-body aircraft. The payoffs (in billion dollars) from each strategy are shown in the following payoff matrix. Airbus Wide-body Narrow-body aircraft aircraft Wide-body 32 38 aircraft 130 38 Boeing Narrow-body 38 36 aircraft 34 36 (a) If both Airbus and Boeing move simultaneously, does either firm have a dominant strategy? (b) Briefly define the concept of Nash equilibrium. What is the Nash equilibrium, if any, in this game? (c) Assume that the US government provides a $10 billion subsidy to Boeing, provided Boeing produces a wide body aircraft. What is the new Nash equilibrium? In this setting, does the subsidy increase overall welfare (Hint: ignore consumer surplus)? If the subsidy does not improve welfare, why would the government implement it? Explain your answer in a couple of sentences