-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.

Question

Quizplus · Accepted Answer

If both MCI and AT&T charge 4¢ a minute, the payoff for each is $320 million.

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