imagine there are two companies, East vwater and west water, Whicn produce silicon warers, the base component in the microchips which constitute the brains of our computers. Below is the daily demand for silicon wafers: suppose, for simplicity, east wafer and west wafer have the same constant cost structure, so maximizing total revenue maximizes profit. if east wafer and west wafer initially form a cartel, but subsequently succumb to the temptation to cheat on each other, what will be the nash equilibrium? east wafer and west wafer will each earn a daily profit of $40000. east wafer will earn a daily profit of $50000 and west wafer will earn a daily profit of $37500. west wafer will earn a daily profit of $50000 and east wafer will earn a daily profit of $37500. east wafer and west wafer will each earn a daily profit of $45000.
