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

question 88

Multiple Choice

-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.

• A)$320; $320
• B)$200; $500
• C)$500; $200
• D)$450; $450
• E)$320; $500