Think of this example as similar to the Prisoner's Dilemma,and complete the following table with the total profit (revenue minus costs) for both firms based on the decisions of both A and B.

Practice B

Purchase Doesn't purchase

Practice A Purchase Scenario 1 Scenario 2

Doesn't purchase Scenario 3 Scenario 4

a. In scenario 1,each firm will incur the full cost of the equipment, and they split the new business.The total profit, considering both companies, is____.

b. In scenario 2, one firm incurs the full cost of the equipment and gets all the new business; the other firm loses customers to the business with new technology. The total profit, considering both companies, is____.

c. In scenario 3, one firm incurs the full cost of the equipment and gets all the new business; the other firm loses customers to the business with new technology. The total profit, consideringboth companies, is ____.

d. In scenario 4, neither company incurs new costs, so there is no new business. The total profit, considering both companies, is ____.