University Subs and Subway are the only two sandwich shops in the city. If either runs a special 2-for-1 promotion, both are able to keep their prices high and earn $10,000 a month. However, when both don't run promotions, either profits fall to $1000. Finally, if one runs a promotion and other does not, the shop that runs promotion earns a profit of $15,000 and the other loses $5000. a. Construct a payoff matrix for this game and represent the game in normal form
b. What is the dominant strategy for Subway? What should it do? c. If any what is the equilibrium in the game?

Answerprice ceiling;

Part (a) is relatively straight forward.there are 4 aces in a standard 52-card deck. so the probability that an ace is picked is just 4/52.part (b): note that there are 4 suits in a standard 52-card deck. so picking hearts will be 13/52 or 1/4.part (c): the probability condition or means we need to add the two probabilities because we do not want them simultaneously. so, we end up getting pr(ace) + pr(heart).from part (a), we found that picking an ace had a probability of 4/52, which is reduced down to 1/13.from part (b), we found that picking a heart had a probability of 1/4.so, the probability of an ace or a heart is 1/13 + 1/4 = 4/52 + 13/52 = 17/52.