The Clifford Company and Scott Inc. both produce belt buckles. The two firms have the choice of producing either large or small belt buckles. The payoffs for Scott Inc. are shown first in each box and the payoffs for the Clifford Company are second in each box. a. In what type of market structure are the two firms operating? Explain. (_____/1) b. Does Scott Inc. have a dominant strategy? Explain. (_____/1) c. Does the Clifford Company have a dominant strategy? Explain. (____/1) d. Is there a Nash Equilibrium? Why or why not? Explain. (_____/1)
