Final answer:
In a simultaneous game, it is likely that both firms will collude and earn $1000 each in profits.
Step-by-step explanation:
In a simultaneous game, the likely outcome for each firm's payoff depends on their strategic choices. Based on the information provided, it is likely that both firms will collude and not cheat.
This is because if Firm A cheats, it can only boost its profits a little since Firm B is small, and if both firms cheat, Firm A will lose a significant portion of its potential earnings. Therefore, both firms have an incentive to collude and earn $1000 each in profits.