The town ofPerkasie, Pennsylvania, has twodiners: Emil's Diner and BobbyRay's Diner. Both sell only chicken pies. Everyone who would consider eating at the diners is aware that they sell the same chickenpies, and knows the prices they charge (pE, pBR). At precisely 5P.M., each diner(simultaneously) sets its price of chicken pie for that evening. The market demand function for chicken pie is Q=36030p, where p is the lower of the twodiners' prices. If there is alower-priced diner, then people eat chicken pie at only that diner and the diner sells 36030p chicken pies. If the two diners post the sameprice, then each sells toone-half of themarket: 0.5(36030p). Suppose that prices can be quoted in dollar units only($0, 4, 6, or 8). Eachdiner's marginal cost is $4 and fixed cost is$0.

IfEmil's Diner charges$0 and BobbyRay's Diner charges $6, thenEmil's profit is $ .....and BobbyRay's profit is $. (Enter numeric responses usingintegers.)

In a secondexample, ifEmil's Diner charges $4 and BobbyRay's Diner charges $6, thenEmil's profit is .....$ and BobbyRay's profit is $.

Next, ifEmil's Diner charges $6 and BobbyRay's Diner charges $6, thenEmil's profit is $ ......and BobbyRay's profit is $.

IfEmil's Diner charges $8 and BobbyRay's Diner charges $6,thenEmil's profit is $ .....and BobbyRay's profit is $.

Profits for all price combinations are illustrated in the payoff matrixbelow: