Question

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars each company will earn depending on whether or not it advertises:

Answer 1

If it is supposed that Fizzo and pop-hop are the only two firms that sell orange soda, then the payoff matrix that shows the profit is that if the Fizzo already decided to advertise, they will actually gain nine million.