Suppose Two Firms, Allstom from France, and Bombardier from Canada

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. $\begin{array}{|l|l|l|}\hline \text { Bombardier (B) }&\text { Allstom (A) }\\\hline &\begin{array}{l}\text { A bids } \\\text { \$50 million }\end{array} & \begin{array}{l}\text { A bids } \\\$ 35 \text { million }\end{array} \\\hline \begin{array}{l}\text { B bids } \\\$ 50 \text { million }\end{array} & \begin{array}{l}\text { Profit to } A: \$ 10 \mathrm{~m} \\\text { Profit to } B: \$ 10 \mathrm{~m}\end{array} & \begin{array}{l}\text { Profit to } A: \$ 5 \mathrm{~m} \\\text { Profit to } \mathrm{B}: \$ 0 \mathrm{~m}\end{array} \\\hline \begin{array}{l}\text { B bids } \\\$ 35 \text { million }\end{array} & \begin{array}{l}\text { Profit to } A: \$ 0 \\\text { Profit to } B: \$ 5 \mathrm{~m}\end{array} & \begin{array}{l}\text { Profit to } A: \$ 2.5 \mathrm{~m} \\\text { Profit to } B: \$ 2.5 \mathrm{~m}\end{array} \\\hline\end{array}$ FIGURE 11- 4
-Refer to Figure 11- 4. Given the information provided in the figure, what is the cost to either firm of completing this project on its own?

A) $30 million
B) $10 million
C) $2.5 million
D) $20 million
E) $5 million