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 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 Fox's strategy given what Disney's release choice may be?

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