1. Westinghouse and General Electric are competing on the newest version of clothes washer and dryer combinations. Two pricing strategies exist: price high or price low. The profit from each of the four possible combinations of decisions is given in the following payoff matrix:

Westinghouse's price

High ($4000) Low ($2000)

High

($4000) GE: $10,000,000 GE: $-4,000,000

GE W: $10,000,000 W: $16,000,000

Price

Low GE: $16,000,000 GE: $4,000,000

($2000) W: $-4,000,000 W: $4,000,000

Payoffs in dollars of profit.

1.THe Nash equilibrium is for Westinghouse to set its price at _______________ and earn a profit of __________ and for General Electrics to set its price at __________ and earn a profit of ____________