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Two airlines, Star and Big, are the only two airlines operating flights between Collegeville and Bigtown. Assume they are the only airlines competing. Each airline

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Two airlines, Star and Big, are the only two airlines operating flights between Collegeville and Bigtown. Assume they are the only airlines competing. Each airline can charge either a high price or a low price for a plane ticket. The payoff table shows their payoffs of the two possible choices they can make in each round of competition. The first entry of an ordered pair in this payoff table is for the Star Airline and the second entry is for Big Airline. Big Airline High price Low price Star Airline High Price ($40 million, $40 million) ($0, $50 million) Low Price ($50 million, $0) ($20 million, $20 million) Refer to Scenario 5. What is the profit made by each airline in the Nash equilibrium when they compete once? O Each airline makes $20 million. O Each airline makes $40 million O The profit made by the Star Airline is $0 and the one made by the Big Airline is $50 million. O The profit made by the Star Airline is $50 million and the one made by the Big Airline is $0

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