Please see attached. Question 1 & 2 I need help with please. Vaxiboost is a new, generic pharmaceutical product sold by Blue and Red. Both are consideringtheir pricing decisions for the next year. Payoffs under different combinations of decisions are asfollows:If both Blue and Red price high, both will receive profits of £3m in the coming year.If Blue prices high and Red prices low, Blue will receive profits of £0.7m and Red will receiveprofits of £6m.If Blue prices low and Red prices high, Blue receive profits of £5m and Red will receive profitsof £2m.If both Blue and Red price low, both will receive profits of £0.1m.1.Draw a payoff matrix to show this information as a simultaneous one-shot game inwhich each pharmaceutical company has to make a decision without knowing whatthe other will do.2. Assuming both companies are fully rational and informed about all the payoffs inthis game, explain fully for each company whether it has a dominant strategy. Writedown all the dominant strategies that exist in the game.

Answered: Image /qna-images/answer/b1ef6943-3402-4048-9f99-7d73640a8d28.jpg

1. Draw a payoff matrix to show this information as a simultaneous one-shot game in which each pharmaceutical company has to make a decision without knowing what the other will do. 2. Assuming both companies are fully rational and informed about all the payoffs in this game, explain fully for each company whether it has a dominant strategy. Write down all the dominant strategies that exist in the game.