Return to the Tudor-Fordor example in Section 6.A, when Tudor’s low per-unit cost is 5. Let z be the probability that Tudor actually has a low per-unit cost. (a) Rewrite the table in Figure 8.8 in...

Return to the Tudor-Fordor example in Section 6.A, when Tudor’s low per-unit cost is 5. Let z be the probability that Tudor actually has a low per-unit cost.

(a) Rewrite the table in Figure 8.8 in terms of z.

(b) How many pure-strategy equilibria are there when z = 0? Explain.

(c) How many pure-strategy equilibria are there when z = 1? Explain.

(d) Show that the Nash equilibrium of this game is always a separating equilibrium for any value of z between 0 and 1 (inclusive).