Synergy and Dynaco are the only two firms in a specific high-tech industry. They face th...

Synergy and Dynaco are the only two firms in a specific high-tech industry. They face the following payoff matrix as they decide upon the size of their research budget:

a. Does Synergy have a dominant strategy? Explain.

b. Does Dynaco have a dominant strategy? Explain.

c. Is there a Nash equilibrium for this scenario? Explain. (Hint: Look closely at the definition of Nash equilibrium.)