Multiple Choice
Refer to the payoff matrix. Which of the following statements is true regarding the outcome of this game?
A) Both firms will price high, and this outcome is a Nash equilibrium.
B) Both firms will price low, and this outcome is a Nash equilibrium.
C) Both firms will price high, but this outcome is not a Nash equilibrium.
D) Both firms will price low, but this outcome is not a Nash equilibrium.
Correct Answer:
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