-Suppose Intel and AMD Can Each Charge Either $300 or $200

Multiple Choice

-Suppose Intel and AMD can each charge either $300 or $200 for a CPU (the computing unit of a computer) . The above table illustrates the payoffs, in millions of dollars, from each of the four possible outcomes that could occur in their duopoly setting. What must Intel's price be for AMD to earn $220 million in profit?

A) $200
B) $220
C) $400
D) Either $300 or $400 because AMD earns $220 million in profit either way.
E) None of the above answers is correct because the payoff matrix shows that it is not possible for AMD to earn $220 million in profit.