1. Suppose all firms in a perfectly competitive and zero-fixed-cost industry previously in its
long-run equilibrium are now receiving an upfront subsidy from the US government.
Please use a graphic tool to answer the following questions:
1) a. Tom and Jerry do not have dominant strategies in this game because if Jerry plays left,
Tom should play left. If Jerry plays right, Tom should play right because it gives him 100
instead of 0. Toms best strategy depends on Jerrys first