Suppose two firms,Allstom from France,and Bombardier from Canada,are bidding on a contract to replace train cars for the subway system in Mexico City.If they bid the same amount,they share the contract-otherwise,the low bid wins.The figure below shows the payoff matrix for this contest.
FIGURE 11-5
-Refer to Figure 11-5.Given the information provided in the figure,what is the cost to either firm of completing this project on its own?
A) $2.5 million
B) $5 million
C) $10 million
D) $20 million
E) $30 million
Correct Answer:
Verified
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