7. The following matrix shows the strategies of At & T and Verizon for charges f

Question

7.
The following matrix shows the strategies of At & T and Verizon for charges for long distance calls. The payoff matrix shows the profits each makes in millions of dollars. Read the table for Verizons' strategies column-wise and A T & T's strategies row-wise. Suppose Verizon and AT &T can each charge 40 cents and 30 cents a minute for long distance calls. Nash Equilbrium in this game would mean a profit for Verizon of ----- and a profit for AT&T of ------.



Verizon's pricing strategies
A T & T 40 cents 30 cents
Pricing 40 cents
V: $450

A: $450

V: 500

A: $200

Strategies 30 cents
V: 200

A: $500

V: $300

A: $300



A) $200, $500
B) $450, $450
C) $300, $300
D) $500, $200

Explanation / Answer

C) $300, $300

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