Consider two firms, X and Y, that produce super computers. Each can produce the next generation super computer for the military (M) or for civilian research (C). However, only one can successfully produce for both markets simultaneously. Also, if one produces M, the other might not be able to successfully produce M, because of the limited market. The following payoff matrix illustrates the problem. 
a. Find the Nash equilibrium, and explain why it is a Nash equilibrium.
b. If Firm X were unsure that the management of Firm Y were rational, what would Firm X choose to do if it followed a maximin strategy? What would both firms do if they both followed a maximin strategy?
Definitions:
Hyperthreading
A technology used by some CPUs that allows a single physical processor core to act as two separate logical cores, improving multitasking and performance.
Pipelining
A technique that allows the CPU to work on more than one instruction (or stage of processing) at the same time, thereby boosting CPU performance.
Parallel Processing
A large network of computers, with each computer working on a portion of the same problem simultaneously.
Overclocking
The process of increasing the operating speed of a computer component, such as the CPU or GPU, beyond the manufacturer's specifications.
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