Disney -Disney and Fox Must Decide When to Release Their Next

Disney

-Disney and Fox must decide when to release their next films. The revenues received by each studio depend in part on when the other studio releases its film. Each studio can release its film at New Year or at Christmas. The revenues received by each studio, in millions of dollars, are depicted in the payoff matrix above. Which of the following statements correctly describes Disney's strategy given what Fox's release choice may be?

A) If Fox chooses a New Year release, Disney should choose a Christmas release.
B) If Fox chooses a Christmas release, Disney should choose a New Year release.
C) Disney should release on New Year regardless of what Fox does.
D) Both answers A and B are correct.