Download the attachment with the payoffmatrix. Oligopoly Game Theory DiscussionProblem wo ans(1).docxOligopolyGame Theory1. Use the payoff matrix to explain themutual interdependence thatcharacterizes oligopolistic industries.2. Assuming no collusion between X and Y,what is the likely pricing outcome?3. In view of your answer to b, explain whyprice collusion is mutually profitable. Whymight there be a temptation to cheat onthe collusive agreement? OligopolyGame TheoryX's possible prices$40$35$57$59$60$55$50$55$69$58a. Use the payoff matrix to explain the mutual interdependencethat characterizes oligopolistic industries.b. Assuming no collusion between X and Y, what is the likelypricing outcome?c. In view of your answer to b, explain why price collusion ismutually profitable. Why might there be a temptation to cheaton the collusive agreement?Answer:Y's possible prices$35

a. Use the payoff matrix to explain the mutual interdependence that characterizes oligopolistic industries. b. Assuming no collusion between X and Y, what is the likely pricing outcome? c. In view of your answer to b, explain why price collusion is mutually profitable. Why might there be a temptation to cheat on the collusive agreement? Answer: