Question

Bud (red squares) 20,000 gallons 10,000 gallons Bud and Wise are the only two producers of aniseed beer, a New Age product designed to displace root beer. Bud and Wise are trying to figure out how much of this new beer to produce. They know ) If they both produce 10,000 gallons a day, they will make the maximum attainable joint economic profit of $200,000 a day, or $100.000 a day each () If either firm produces 20,000 gallons while the other produces 10.000 gallons a day, the one that produces 20,000 gallons will make an economic profit of $200,000 and the other will incur an economic loss of $50,000 () If both produce 20.000 gallons a day, each firm will make zero economic profit 20,000 gallons Wise blue squares) Construct a payoff matrix for the game that Bud and Wise must play >>> The payoffs in the matrix are in dollars. Do not enter a dollar sign >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm makes an economic profit, do not include a plus sign 10,000 gallons

Answer 1

Payoff Marin 10, oro 20,000 gallone gallo -50,000 20,000 gallone loca o 200, VD 200,000 100,000 10,000 gallony - 50.000 100,000