A home cleaning consumer market in Urbana, Illinois, involves a competion for market shares among three home cleaning companies: Merry Maids (MM), Cleaning Masters (CM) and Services With a Smile (SWS). A consumer survey revealed that at the moment Merry Maids has 45% of the market, Cleaning Masters has 20%, and Service With a Smile has 35%. Moreover, each month 10% of Merry Maids customers change to Cleaning Masters and 90% of Merry Maids customers change to Services With a Smile, 45% of Cleaning Masters customers change to Merry Maids and 25% of Cleaning Masters customers change to Services With a Smile, and 20% of Service With a Smile customers change to Merry Maids and 40% of Service With a Smile customers change to Cleaning Masters. a) What are transition matrix and initial market shares vector for this home cleaning market

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms. if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise. if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise. if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise. both firms will choose to advertise. fizzo will choose not to advertise and pop hop will choose to advertise. both firms will choose not to advertise. again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise. both firms will choose not to advertise. fizzo will choose to advertise and pop hop will choose not to advertise. both firms will choose to advertise.