Two competing firms are each planning to introduce a new product. Each will decide whether to produce Product A, Product B or Product C. They will…

(i) Are there any Nash equilibria in pure strategies? If so, what are they?

(ii) If both firm use maximin strategies, what outcome will result?

(iii) If Firm 1 uses a maximin strategy and Firm 2 knows this, what will Firm 2 do?

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