you have developed a new computer operating system and are considering whether you should enter the market and compete with microsoft. microsoft has the option of offering their operating system for a high price or a low price. once microsoft selects a price, you will decide whether you want to enter the market or not enter the market. if microsoft charges a high price and you enter, microsoft will earn $30 million and you will earn $10 million. if microsoft charges a high price and you do not enter, microsoft will earn $60 million and you will earn $0. if microsoft charges a low price and you enter, microsoft will earn $20 million and you will lose $5 million. if microsoft charges a low price and you do not enter, microsoft will earn $50 million and you will earn $0. Construct a payoff table and find the Nash equilibrium if you and Microsoft both make your decisions simultaneously.
a. In a simultaneous move game, Microsoft will___and you will____.
b. Now suppose that Microsoft selects a price first charge a low price ther you enter the market for this sequential move game. This part is not graded, but you will need to make the game tree on your own to answer the following question.
c. In this sequential move game, Microsoft will____and you will_____.