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If Orbit produces Small Cars, it will make a profit of $40 million if Apex produces Large Cars Or a loss of $20 million if Apex produces Small Cars. If Orbit produces Large Cars, it will make a profit of $40 million if Apex produces Small Cars Or a loss of $20 million if Apex produces Large Cars. Based on the payoff matrix described above, which you can set up using your blank sheet of paper, answer the following questions: 1. Do these firms have a dominant strategy? 2. Is there a Nash Equilibrium? 3. Under what economic circumstances could the outcomes or amounts shown in the payoff matrix for this market likely to occur?
Minimum of 200 words and maximum of 275 words
You will be penalized for going under or over.
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