Figure 17-4

Figure 17-4. Two companies, Acme and Bilco, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies.

-Refer to Figure 17-4.Suppose the outcome of the game is one in which Acme's profit is $2 million and Bilco's profit is $7 million.The most likely explanation for this outcome is that

A) each company pursued its dominant strategy.
B) each company's objective was to maximize the sum of the two companies' profits.
C) the two companies reached an agreement on what price to charge, and Acme subsequently cheated.
D) the two companies reached an agreement on what price to charge, and Bilco subsequently cheated.