-Suppose Intel and AMD can each charge either $300 or $200 for a CPU (the computing unit of a computer) . 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 Intel charges $300 and AMD charges $300, then Intel's profit will be ________ million and AMD's profit will be ________ million.

Question

Quizplus · Accepted Answer

Explanation: In a duopoly setting where both Intel and AMD decide to charge $300 for a CPU, the payoff for each company would be determined by their respective strategies and the resulting market dynamics. Given the options, the correct answer is C) $320 million for Intel and $160 million for AMD, as this reflects a scenario where both companies are charging a higher price, leading to higher profits for Intel and relatively lower but significant profits for AMD in comparison to other outcomes.

-Suppose Intel and AMD Can Each Charge Either $300 or $200