Lets again consider the same two firms from the previous question. In this game, both firms have already entered the market and now decide what price to charge. For concreteness, suppose that there...

Extracted text: Lets again consider the same two firms from the previous question. In this game, both firms have already entered the market and now decide what price to charge. For concreteness, suppose that there are 10 million customers, each of whom will buy from one of the two firms, and that each firm decides whether to charge $20 or $30 (with costs of zero). If both firms charge the same price, they will each sell to 5 million customers, but if one charges the low price ($20) and the other charges the high price ($30), 8 million will buy from the low-price firm and 2 million will buy from the high-price firm. (a) Create a payoff matrix for this game. (b) Identify any dominant strategies for either of the two players. (C) Identify any Nash equilibrium in the game, using the best response analysis. (d) Is this a Prisoner's Dilemma situation?