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The demand for product X is shown in the table below. Currently, all units of this product are produced by two large companies. Suppose the
The demand for product X is shown in the table below. Currently, all units of this product are produced by two large companies. Suppose the government has a law that says collusive agreements and cartels are illegal. In each company's profit maximisation process, firms A and B have the following information about their payoffs: 1. when firm B follow cartel agreement and firm a follow cartel, firm A: $42,000 and firm b: $42,000. 2. when firm B increase production and firm a follow cartel, firm A: $28,000and firm B: $44,000. 3. when firm B follow cartel agreement and firm A increase production, firm A: $44,000 and firm B: $28,000. 4. when firm B increase production and firm A increase production, firm A: $30,000 and firm B: $30,000. If each firm acts out of self-interest and maximises its own profit, what is the Nash equilibrium? Explain your
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