The following diagram shows the market shares of the supermarket industry in Australia:

2.a). What type of market structure is the supermarket industry? Explain.

2.b). Refer to the following matrix below.Two non-collusive supermarkets, "C" and "W" are playing a game where they have to choose whether to "cut" or "raise" prices for grocery items.The outcomes of their profit (in $M) are summarized below.

Supermarket "C"

Cut price

Raise price

Supermarket "W"

Cut price 160, 160

200, 100

Raise price

100, 200

120, 120