Given below are two statements:
Statement I: If firms are disproportionately powerful, the market leader makes the first move and captures two-thirds of the market share, while the follower firm gets only a third of the market share.
Statement II : Oligopolist firms do better by cooperating than following its dominant strategy.
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both Statement I and Statement II are correct
2
Both Statement I and Statement II are incorrect
3
Statement I is correct but Statement II is incorrect
4
Statement I is incorrect but Statement II is correct