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Microsoft's Price $800 $790 Sony's Price $800 700, 800 400, 1100 $790 800, 700 600, 900 Suppose that Sony and Microsoft compete in selling video

Microsoft's Price
$800 $790
Sony's Price $800 700, 800 400, 1100
$790 800, 700 600, 900

Suppose that Sony and Microsoft compete in selling video game consoles with constant average cost of $750 and demand is as in the table above (in '000s).

Question 5 (5 points)

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(5 Points) Construct the Payoff Matrix (in Millions) in the simultaneous moves game. Fill in the blanks below with the format Sony Payoff, Microsoft Payoff. Ex: 25, 15

Microsoft Payoff (Millions)
$800 $790
Sony Payoff $800 BLANK 1 BLANK 2
(Millions) $790 BLANK 3 BLANK 4

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