Game matrix, price levels of similar products of two competitor firms and profits that these two firms will earn at those price levels are shown.
a) Determine the strategy of each firm at the equilibrium.
b) In game theory, what kind of game does the above game constitutes an example for? Explain briefly.
c) Is any solution in which both firms can obtain higher profits than they do in equilibrium possible? If yes, explain how firms can reach this result.
