4. Bud and Wise are the only two producers of aniseed beer, a New Age product designed to displace
root beer. Bud and Wise are trying to figure out how much of this new beer to produce. They
know:
(i) If they both limit production to 10,000 gallons a day, they will make the maximum
attainable joint economic profit of $200,000 a day, or $100,000 a day each.
(ii) If either firm produces 20,000 gallons a day while the other produces 10,000 a day, the
one that produces 20,000 gallons will make an economic profit of $150,000 and the other
will incur an economic loss of $50,000.
(iii) If both produce 20,000 gallons a day, each firm will make zero economic profit.
(1) Construct a payoff matrix for the game that Bud and Wise must play. (5 分)