Answer:
Flashfone and Pictech
The Nash equilibrium is achieved when Pictech and Flashfone price their smartphones high without the other party changing their strategy.
Step-by-step explanation:
a) Data and Calculations:
Pictech
High Low
High 8 8 3 10
Flashfone
Low 10 3 5 5
b) By acting at the Nash equilibrium and pricing their smartphones high, Pictech and Flashfone achieve a payoff of $8 million respectively. This payoff level does not put any of the two firms at a disadvantage.