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(a) What is firm Y’s best response to each of the two different prices firm X could charge? Does firm Y have a dominant strategy?

(b) What is firm X’s best response to each of the different prices firm Y could charge? Does firm X have a dominant strategy?

(c) What is/are the Nash equilibrium/equilbria? What is the most likely outcome of this game? Explain your answer.

Fig: 1