-Suppose Intel and AMD Can Each Charge Either $300 or $200

question 71

Multiple Choice

-Suppose Intel and AMD can each charge either $300 or $200 for a CPU (the computing unit of a computer) . 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 Intel charges $200 and AMD charges $300, then Intel's profit will be ________ million and AMD's profit will be ________ million.

• A) $320; $160
• B) $200; $180
• C) $500; $220
• D) $450; $220
• E) $500; $100