The following is a classic normal form game that depicts the pricing rivalry between Intel and AMD for their newest top-of-the-line microchip. Each company considers five possible price profits in millions: levels: $449, $399, $349, $299 and $249. They decide their prices simultaneously. Monthly AMD 449 399 349 299 249 410 50 70 55 200 45 180 30 150 120 399 35 95 45 50 230 210 25 160 130 110 Intel 349 15 25 50 210 35 190 20 180 140 290 15 25 170 150 120 249 10 15 120 110 10 105 95 90 QUESTIONS: (1) What is (are) the Nash equilibrium (equilibria) of the game? (2) What combination of strategies generates the highest total profit? (3) Suppose you were Intel's CEO. You are told by your team you have 3 options. (a) Make a binding announcement selecting a price ahead of time, (For example, send out written contracts locking in a price for customers you are unable to change. Essentially you get to move first and turn a simultaneous game into a sequential one.) (b) Make a binding announcement to move second by delaying the launch of your product. (Assume AMD must move first and select a price. Essentially you get to move second.) (c) Take no action of any kind and make the decision at the same time (play simultaneously). Which of these options is the offers the highest payoff for AMD