-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 3¢ 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 MCI charges 3¢ a minute and AT&T charges 4¢ a minute, MCI's profit will be $500 million and AT&T's profit will be $200 million.

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