Overview This week analyzes how price and output are determined under oligopoly. It covers the Cournot model, the kinked demand curve model, cartel arrangement, and Porters strategic framework. It also discusses firm architecture in a globalizing world as well as it deals with strategic behavior, dominant strategy, the Nash equilibrium, the prisoners dilemma, and other decision-making games.Learning Outcomes Upon successful completion of this module, you will be able to: Understand the interrelationship among firms in the oligopoly market. Understand various models that explain the oligopoly market. Apply game theory in decision-making.In 550-word count, answer the following questions: 1. A market has only 2 sellers. They are both trying to decide on a pricing strategy. If both firms charge a high price, then each firm will experience a 5% increase in profits. If both firms charge a low price, then each firm will experience a 3% increase in profits. If Firm 1 charges a high price and Firm 2 charges a low price, then Firm 1 will experience a 1% increase in profits and Firm 2 will experience a 6% increase in profits. If Firm 2 charges a high price and Firm 1 charges a low price, then Firm 2 will experience a 2% increase in profits and Firm 1 will experience a 7% increase in profits. Construct a payoff matrix for this game. Determine whether each firm has a dominant strategy and, if it does, identify the strategy. Determine the optimal strategy for each firm. Determine the Nash equilibrium. (v) Is this a prisoners dilemma? How do you know? 2. Respond to the charge that immigrants flood the labor market and drive down wages in the U.S. Additional information: When a foreigner resides among you in your land, do not mistreat them. The foreigner residing among you must be treated as your native-born. Love them as yourself, for you were foreigners in Egypt. I am the LORD your God (Leviticus 19:3334, NIV). There is no evidence that over time, immigrants reduced wages, lowered the living standards of the resident population or raised unemployment rates. John Stapleford, Bulls, Bears, and Golden Calves. IVP Academic (p. 227)