Suppose Toyota and Honda must decide whether to make a new breed of side-impact airbags standard equipment on all models.Side-impact airbags raise the price of each automobile by $500. If both firms make side-impact airbags standard equipment, each company will earn profits of $1.5 billion.If neither company adopts the side-impact airbag technology, each company will earn $0.5 billion (due to lost sales to other automobiles).If one company adopts the technology as standard equipment and the other does not, the adopting company will earn a profit of $2 billion and the other company will lose $1 billion.

a. Construct the normal form game given the information above.

b. Identify the dominant strategy for each firm.