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Two airplane manufacturers are considering the production of a new product, a 150-passenger jet. Both are deciding whether to enter the market and produce the
Two airplane manufacturers are considering the production of a new product, a 150-passenger jet. Both are deciding whether to enter the market and produce the new planes. The payoff matrix is as given (payoff values are in millions of dollars). The implication of these payoffs is that the market demand is large enough to support only one manufacturer. If both firms enter, both will sustain a loss.
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