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Use the payoff matrix below to answer questions 32-35. It represents the outcomes of two breweries Bronx and Brooklyn Breweries) who are deciding what type

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Use the payoff matrix below to answer questions 32-35. It represents the outcomes of two breweries Bronx and Brooklyn Breweries) who are deciding what type of beer to unveil. They unveil the new beers simultaneously, without discussing it with each other, and cannot change their decision once unveiled. The payoffs represent profits. Bronx Brewery IPA Porter 90 50 IPA 60 120 Brooklyn Brewery 105 100 Porter 50 70 31. Are there any dominant strategies? a. Yes, both firms have dominant strategies b. Yes, Bronx Brewery has a dominant strategy c. Yes, Brooklyn Brewery has a dominant strategy d. No 32. Are there any mixed strategies? a. Yes, both firms have mixed strategies b. Yes, Bronx Brewery has a mixed strategy c. Yes, Brooklyn Brewery has a mixed strategy d. No 33. What is the Nash Equilibrium? a. Both playing IPA b. Both playing Porter c. Bronx playing IPA; Brooklyn playing Porter d. Bronx playing Porter; Brooklyn playing IPA 34. Is there a potential collusive agreement to be had that is not the Nash Equilibrium? a. Yes, both picking Porter b. Yes, both picking IPA c. Yes, Bronx picking Porter; Brooklyn picking IPA d. No

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