How do you set up this game theory matrix?
Firms 1 and 2 operate in a market with demand given by: P(Q) = 100 - Q. Each firm has costs given by: C(Q) = 10Q. Each firm has three possible output levels: 25, 30, and 40.
How do you get the numbers inside the matrix? What equations do you use? A step-by-step breakdown would be greatly appreciated!