Business, 06.07.2019 22:20 alegora78

Suppose toyota and honda must decide whether to make a new breed of side-impact airbags standard equipment on all models. side-impact airbags raise the price of each automobile by $1,000. if both firms make side-impact airbags standard equipment, each company will earn profits of $3.5 billion. if neither company adopts the side-impact airbag technology, each company will earn $2 billion. if one company adopts the technology as standard equipment and the other does not, the adopting company will earn a profit of $4.5 billion and the other company will earn $0.5 billion.

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