Question

To answer the questions In the Pricing Games case, you create a table (it's known as a payoff table) for Sony Playstation 3 at $399 when MicrosoftXbox 360 is $399 and when it is $299, and for Sony at $299 when Microsoft 360 is $399 and $299.

How important are Exhibits 1 and 2 in the case to your ability to solve all of the following?

1.Profit SONY, Profit Microsoft when both $399 per unit

2. Profit SONY when SONY $299 AND Microsoft $399; Profit MICROSOFT when MICROSOFT $399 and Sony $299

3. Profit SONY when SONY $399 and Microsoft $299

4. Profit MICROSOFT when MICROSOFT $299 and Sony $299

In the Pricing Games case, how important are exhibits 1 and 2 to completing a payoff table

		You need Exhibit 1 to see what the projected numbers sold are based on price. You need Exhibit 2 to figure out variable costs per unit
		You need Exhibit 1 to figure out variable costs per unit You need Exhibit 2 to see what the projected numbers sold are based on price.
		The Exhibits are not important to completing the payoff table.
		Trick question! I did not see any exhibits.

Answer 1

Exhibit 1: Prices and projected annual sales volumes for Sony PlayStation 3 and Microsoft Xbox 360 Elite

Exhibit 2: Sony PlayStation 3 Production Costs per unit in dollars

option A) is correct

You need Exhibit 1 to see what the projected numbers sold are based on price.

You need Exhibit 2 to figure out variable costs per unit