Questions: Assume both companies are in competition with each other and seek to maximize their profits. Under these conditions, how much profit should we expect both companies to earn?

To answer this question, we need to analyze the table of expected profits for each company under different pricing scenarios. However, since the table is not provided in the text, I will outline the general approach to solving such a problem using game theory, specifically the concept of Nash Equilibrium.

1. Identify the Players and Strategies: In this scenario, there are two companies, each with a set of pricing strategies. The table would typically show the profits for each company based on the combination of strategies chosen by both companies.

2. Determine the Payoffs: The table should provide the expected profits (payoffs) for each company for every combination of pricing strategies.

3. Find the Nash Equilibrium: A Nash Equilibrium occurs when each company chooses a strategy that maximizes its profit, given the strategy chosen by the other company. At this point, neither company has an incentive to unilaterally change its strategy.

4. Analyze the Table:

   • For each possible strategy combination, check if either company can increase its profit by changing its strategy while the other company's strategy remains unchanged.
   • The Nash Equilibrium is reached when neither company can improve its profit by changing its strategy alone.

5. Expected Profits: Once the Nash Equilibrium is identified, the expected profits for both companies are the profits corresponding to the equilibrium strategy combination.

Without the specific table, I cannot provide the exact expected profits. However, by following the steps above, you can determine the expected profits for both companies based on the given pricing scenarios.