Figure: Pricing Strategy in Cable TV Market I

Figure: Pricing Strategy in Cable TV Market I (Figure: Pricing Strategy in Cable TV Market I) Look at the figure Pricing Strategy in Cable TV Market I.If the two firms in the cable TV market collude, then:

A) both firms advertise, and each earns $100,000 per month.
B) neither firm advertises, and each earns $150,000 per month.
C) CableNorth advertises and earns $130,000 per month, while CableSouth does not advertise and earns $70,000 per month.
D) both firms advertise and each earns $130,000 per month.