. 1 Normal I No Spaci.. Heading 1 Heading 2 Title Subtitle Paragraph Styles 1 Boeing and Airbus are the world's only major producers of large, wide-bodied aircrafts. But with the cost of fuel increasing and changing demand in the airline industry, the need for smaller regional jets has increased. Suppose that both firms mustdecide whether they will produce a smaller plane. Both Boeing and Airbus have to decide whether they produce large, small a not produce without knowing the other's decision. The resulting payoffs are shown in the following matrix (in millions of U. S. dollars). Assume that each producerchooses to either produce only large, only small, or no planes at all. Airbus Large Planes Boeing Small Planes Large Planes Small Planes Not Produce 80,45 90,30 115.0 125, 100 100.70 50.10 0.100 0.125 0,0 Not Produce * The first numberin each cell is payoff to Boeing and the second number indicates that for Airbus . 1 Normal I No Spaci.. Heading 1 Heading 2 Title Subtitle Paragraph Styles 1 Boeing and Airbus are the world's only major producers of large, wide-bodied aircrafts. But with the cost of fuel increasing and changing demand in the airline industry, the need for smaller regional jets has increased. Suppose that both firms mustdecide whether they will produce a smaller plane. Both Boeing and Airbus have to decide whether they produce large, small a not produce without knowing the other's decision. The resulting payoffs are shown in the following matrix (in millions of U. S. dollars). Assume that each producerchooses to either produce only large, only small, or no planes at all. Airbus Large Planes Boeing Small Planes Large Planes Small Planes Not Produce 80,45 90,30 115.0 125, 100 100.70 50.10 0.100 0.125 0,0 Not Produce * The first numberin each cell is payoff to Boeing and the second number indicates that for Airbus