-Dell and Gateway Must Decide Whether to Lower Their Prices

Multiple Choice

-Dell and Gateway must decide whether to lower their prices, based on the potential economic profits shown in the payoff matrix above. (The profits are in millions of dollars.) If the firms collude and don't cheat, Dell's profit is ________ million and Gateway's profit is ________ million.

A) $10; $10
B) $15; $15
C) $5; $20
D) $20; $5