1. Youwork foragraphicsdesigncompanyandhavetheopportunitytosubmitadesignproposalfora news outlet's logo re-design effort. Securing a contract for this work would be a boon for your up- and-coming company. You have a competitive advantage in designing logos using serif fonts, which are trending right now. The incumbent design company, who is your major competitor for this contract, has a competitive advantage in designing logos with sans serif fonts. The news outlet is accepting proposals until July 30 of this year through a private submission process and may decide the winner based on those submissions. You and your competitor know the following facts:
   • Ifyousubmitalogo usingaseriffontandtheyalsouse aseriffont,youwillbeofferedthe design contract andexpecta profitof$10k fromredesigning the logo(and submitting the bid). Your competitor will receive a net benefit from its team gaining more design experience, worth $1k.
   • If yousubmita logo using sans serif font andthey alsouse a sans seriffont, theywill winthe contractandexpectaprofitof$15k.Youwilltakehomeanetbenefitof$1k from the design experience.
   • If yousubmita logo using sans serif font andyourcompetitoruses a seriffont, your equally poor designs will result in neither firm being offered a contract. You both will experience a netcostfrom reputationalimpacts.Yourcostwillbe$3k,andyourcompetitor'swillbe$5k.
   • If you submit a logo using a serif font and your competitor uses a sans serif font, your equallygoodsubmissionswillresultinatie.Youbothcomeofthecompetitionempty- handed with a net benefit of participating of $0, waiting for how the news outlet will proceed with any future evaluation of your work.

1. Representthiscompetitionvisuallyusingthecorrecttool(s)fromeconomicgametheory.(4 points)
2. What is the Nash Equilibrium/Equilibria set(s) of best responses in this "game"? (2 points). Showhowyouarrivedatthisanswerbyhighlightingorcirclingeachfirm'spayoutsfromits best responses and providing a brief explanation (3 points).
3. WillaNashEquilibriumberealizedifyouandyourcompetitordonotcommunicatebefore submitting your proposals? Why or why not? (2 points)
4. WillaNashEquilibriumberealizedifyouandyourcompetitorcommunicatebefore submitting your proposals? Why or why not? (1 point)