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 $1500 B gets $1500	A gets $300 B gets $2400
	Increase Output	A gets $2400 B gets $300	A gets $600 B gets $600

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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