Use the Following to Answer Question

question 139

Multiple Choice

Use the following to answer question:
Figure: Payoff Matrix II for Blue Spring and Purple Rain
-(Figure: Payoff Matrix II for Blue Spring and Purple Rain) Use Figure: Payoff Matrix II for Blue Spring and Purple Rain.The figure describes two producers of bottled water.If both firms follow a tit-for-tat strategy,then:

• A)both firms will charge a high price.
• B)both firms will charge a low price.
• C)Blue Spring will charge a high price,and Purple Rain will charge a low price.
• D)Purple Rain will charge a high price,and Blue Spring will charge a low price.

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Definitions:

Loan Repaid

The act of paying back borrowed money to the lender.

Borrowed

The state of having taken something on loan, often with the obligation to return it or repay an equivalent amount.

Annual Rate

The interest rate for a whole year, as opposed to just a monthly or daily rate.

Days

A unit of time equivalent to 24 hours, often used to measure durations or intervals.