Use the following information to answer the next TWO questions:

Consider the following game between Firm 1 and Firm 2 showing three strategies for each player:

Firm 1's

Strategies

Firm 2's Strategies

A

B

C

A

12,12

8,8

9,10

B

3,9

6,7

8,11

C

5,8

4,9

10,14

33. If the game is played simultaneously and non-cooperatively, identify the truthfulness of the following statements:

I.Strategy B is a dominated strategy for both firms.

II.There are two Nash equilibria in this game.

A.Both I and II are true.

B.Both I and II are false.

C.I is true; II is false.

D.I is false; II is true.

34. What if the game is played sequentially, with Firm 1 being the leader.The Nash equilibrium of the game will be

A.Firm 1 choosing Strategy A and Firm 2 choosing Strategy A.

B.Firm 1 choosing Strategy A and Firm 2 choosing Strategy C.

C.Firm 1 choosing Strategy C and Firm 2 choosing Strategy A.

D.Firm 1 choosing Strategy C and Firm 2 choosing Strategy C.

E.Firm 1 choosing Strategy B and Firm 2 choosing Strategy B.