Two firms are competing in a duopoly and are trying to decide which price to set.The two prices under consideration are a high monopoly price and a low competitive level.If both seller A and seller B chose the monopoly price, each will make $20 million of economic profit.However, if one picks the monopoly price while the other picks the competitive price, the high-price firm will lose $1 million while the low-price firm will make $32 million.If both sell at the competitive level, they both make zero economic profit.Complete the payoff matrix below and determine the Nash equilibrium.
Definitions:
Storming
A stage in group development characterized by conflict and competition as team members assert their personalities and roles.
Empowered Teams
Groups given the authority and responsibility to make decisions and implement them within their areas of operation.
Associates
individuals with whom one is connected in a professional or personal capacity, often implying a degree of collaboration or mutual interest.
Sponsor
An individual or organization that supports a project, event, or individual, often providing funding or resources.
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