Two competing firms must simultaneously determine howmuch of a product to produce. The total profit earned by thetwo firms is always $1,000. If firm 1’s production level is lowand firm 2’s is also low, then firm 1 earns a profit of $500; iffirm 1’s level is low and 2’s is high, then firm 1’s profit is$400. If firm 1’s production level is high and so is firm 2’s,then firm 1’s profit is $600; but if firm 1’s level is high whilefirm 2’s level is low, then firm 1’s profit is only $300. Find thevalue and optimal strategies for this constant-sum game.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Two competing firms must simultaneously determine how
much of a product to produce. The total profit earned by the
two firms is always $1,000. If firm 1’s production level is low
and firm 2’s is also low, then firm 1 earns a profit of $500; if
firm 1’s level is low and 2’s is high, then firm 1’s profit is
$400. If firm 1’s production level is high and so is firm 2’s,
then firm 1’s profit is $600; but if firm 1’s level is high while
firm 2’s level is low, then firm 1’s profit is only $300. Find the
value and optimal strategies for this constant-sum game.
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