Economic 3. If a firm does not have a Dominant strategy what might be its "Secure" (Maximin)strategy? Explain why that is.Continued Overleaf4. Instead of using its "Secure" strategy can the firm use the fact that the other firm has aDominant strategy to improve its results (a Smart Strategy)? Explain.5. Is there a Nash equilibrium in this game? Define what a Nash Equilibrium is and brieflyexplain if there is one, why it is. II. Game Theory (Parts 1-6): Assume there are 2 firms in a city deciding whether or not tohave a Sale and their payoffs are given in the table below:Firm 1StrategyNo SaleSaleFirm 2No Sale20, 2017, 10Sale18, 125, 15Payoffs are in $,000 of Profit1. If the two firms were to engage in Collusion where would they want to be? Explain why.2. Does either of the firms (or both) have a Dominant Strategy? If so explain what it is andwhy it is Dominant.

A market structure where two firms dominate a particular industry or market, either by producing the…

II. Game Theory (Parts 1-6): Assume there are 2 firms in a city deciding whether or not to have a Sale and their payoffs are given in the table below: Firm 1 Strategy No Sale Sale Firm 2 No Sale 20, 20 17, 10 Sale 18, 12 5, 15 Payoffs are in $,000 of Profit 1. If the two firms were to engage in Collusion where would they want to be? Explain why. 2. Does either of the firms (or both) have a Dominant Strategy? If so explain what it is and why it is Dominant.