|Alpha Corp.||Alpha Corp.|
|Omega Corp.||Long||4000, 4500||5500, 8500|
|Omega Corp.||Short||7500, 7000||8000, 6500|
The payoff matrix above shows the possible earnings for Omega and Alpha, two corporations who compete within the same market and must each decide on either a long or short strategy. The first entry in each cell shows Omega Corp.’s expected revenue while the second entry shows Alpha Corp.’s expected earnings.
If the firms compete freely within the market, what will be Alpha Corp.’s likely earnings?