Exhibit 9-4 Two-Firm Payoff Matrix 
Suppose costs are identical for the two firms in Exhibit 9-4. If both firms assume the other will compete and charge a lower price, equilibrium will be established by:
A) Beta Co. charging $1,000 and Alpha Co. charging $1,000.
B) Beta Co. charging $1,000 and Alpha Co. charging $500.
C) Beta Co. charging $500 and Alpha Co. charging $500.
D) Beta Co. charging $500 and Alpha Co. charging $1,000.
Correct Answer:
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