Table 14-8 Two Rival Oligopolists in the Coffee Industry, Wide Awake and Coffee

Table 14-8

Two rival oligopolists in the coffee industry, Wide Awake and Zuma, have to decide on their pricing strategy. Each can choose either a high price or a low price. Table 14-8 shows the payoff matrix with the profits that each firm can expect to earn depending on the pricing strategy it adopts.
-Refer to Table 14-8.If the firms cooperate, what prices will they select?

A) Both firms will select a low price.
B) Zuma will select a high price and Wide Awake will select a low price.
C) Both firms will select a high price.
D) Zuma will select a low price and Wide Awake will select a high price.