Two firms A and B make colour and black and white television sets. Firm A can make either 150 colour sets in a week or an equal number of black and white sets and make a profit of Rs. 400 per colour set and Rs.300 per black and white set. Firm B can on the other hand make either 300 colour sets or 150 colour and 150 black and white sets or 300 black and white sets per week. It also has the same profit margin on the two sets as A. Each week there is a market of 150 colour sets and 300 black and white sets and the manufactures would share market in the proportion in which they manufacture a particular type of set. Write the payoff of A per week. Obtain graphically A’s and B’s optimal strategies and value of the game.
