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-Suppose MCI and AT&T Can Each Charge Either 3¢ or 4¢

Question 88

Multiple Choice

-Suppose MCI and AT&T can each charge either 3¢ or 4¢ a minute for a long distance call. The above table illustrates the payoffs, in millions of dollars, from each of the four possible outcomes that could occur in their duopoly setting. If MCI charges 4¢ a minute and AT&T charges 4¢ a minute, then MCI's profit will be ________ million and AT&T's profit will be ________ million. A) $320; $320 B) $200; $500 C) $500; $200 D) $450; $450 E) $320; $500
-Suppose MCI and AT&T can each charge either 3¢ or 4¢ a minute for a long distance call. The above table illustrates the payoffs, in millions of dollars, from each of the four possible outcomes that could occur in their duopoly setting. If MCI charges 4¢ a minute and AT&T charges 4¢ a minute, then MCI's profit will be ________ million and AT&T's profit will be ________ million.


A) $320; $320
B) $200; $500
C) $500; $200
D) $450; $450
E) $320; $500

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