3- Firms Kaka and Nana serve the same market. They have constant average costs of 2$ per unit. The firms can choose either a high price (10$) or a low price (5$) for their output. When both firms set a high price, the total demand equals 10,000 units, which is split evenly between the two firms. When both set a low price, the total demand is 18,000 units, which is again split evenly. If one firm sets a low price and the second a high price, the low-priced firm sells 15,000 units, the high-priced firm only 2,000 units. Analyze the pricing decisions of the two firms as a non-cooperative game. A- In the normal form representation, construct the pay-off matrix, where the elements of each cell of the matrix are the two firms' profits. B-Derive the equilibrium set of strategies. C-Explain why this is an example of the prisoners' dilemma game.

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