The following table shows the pay-off matrix for West Ltd. and East Ltd. in an oligopolistic market. Each firm has two options: co-operate or start a price war. Refer to the table to answer the question. 
Which of the following is the Nash equilibrium outcome in this oligopoly?
A) East Ltd. co-operates but West Ltd. begins a price war.
B) West Ltd. co-operates but East Ltd. begins a price war.
C) Both firms co-operate.
D) Both firms begin a price war.
Correct Answer:
Verified
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