Two firms have the following options: Hold Down Output (cooperate with other firm) or Increase Output (do not cooperate with other firm) Consider the following payoff matrix:

		Firm B
		Hold Down Output	Increase Output
Firm A	Hold Down Output	A gets $3500 B gets $3500	A gets $700 B gets $5600
	Increase Output	A gets $5600 B gets $700	A gets $1400 B gets $1400

What is the dominant strategy for Firm A?

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What is the dominant strategy for Firm B?

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What is the Nash Equlibrium (in pure strategy)?

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