Two rival cosmetics brands are considering launching a new product.If Firm 1 launches a product for older women while Firm 2 targets college students,Firm 1 will earn $40,000,while Firm 2 will earn $50,000.If both the firms launch a product for older women,Firm 1 will earn $20,000,while Firm 2 will earn $15,000.If Firm 1 launches a product for college students while Firm 2 targets older women,Firm 1 will earn $60,000,while Firm 2 will earn $40,000.If both firms target college students,both firms will earn $30,000.However,Firm 2 will choose its target consumers after Firm 1 has chosen its target consumers.
a)Draw a game tree to represent this situation.
b)What is the equilibrium outcome of this game?
c)Will there be a change in the equilibrium outcome if the firms make decisions simultaneously?

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The Answer of Two rival cosmetics brands are considering launching a new product.If Firm 1 launches a product for older women while Firm 2 targets college students,Firm 1 will earn $40,000,while Firm 2 will earn $50,000.If both the firms launch a product for older women,Firm 1 will earn $20,000,while Firm 2 will earn $15,000.If Firm 1 launches a product for college students while Firm 2 targets older women,Firm 1 will earn $60,000,while Firm 2 will earn $40,000.If both firms target college students,both firms will earn $30,000.However,Firm 2 will choose its target consumers after Firm 1 has chosen its target consumers.
a)Draw a game tree to represent this situation.
b)What is the equilibrium outcome of this game?
c)Will there be a change in the equilibrium outcome if the firms make decisions simultaneously?

Two Rival Cosmetics Brands Are Considering Launching a New Product