Boeing and Airbus are each deciding whether to produce a new aircraft. Because of the huge cost of developing the aircraft, a single producer would need to have the entire world market to itself to earn a profit, say, of $100 million. If both firms produce the aircraft, however, then each loses $10 million. Finally, the payoff for a firmthat does not produce is $0. A. Show me a two-by-two payoff matrix for the "game" between these two firms, with their choices being to produce or not produce and with payoffs according to the information above. Does either firm have a dominant strategy?
