Read Eye on the Wireless Oligopoly in the eText or click on the icon LOADING... to open a copy . Now use the following information to work the exercise.
​AT&T and Verizon have two pricing​ strategies: Set a high​ (monopoly) price or set a low​ (competitive) price.
If they both set a competitive​ price, economic profit for both is zero.
If both set a monopoly​ price, AT&T makes an economic profit of​ $100 million and Verizon of​ $200 million.
If​ AT&T sets a low price and Verizon a high​ price, AT&T makes an economic profit of​ $200 million and Verizon incurs an economic loss of​ $100 million.
If​ AT&T sets a high price and Verizon sets a low​ price, AT&T incurs an economic loss of​ $50 million and Verizon makes an economic profit of​ $250 million.
Part 2
Create the payoff matrix for this game by entering the eight economic profit values below.