Use the Table Below to Answer the Following Questions

question 15

Multiple Choice

Use the table below to answer the following questions.
Table 14.2.2
-Table 14.2.2 gives the payoff matrix in terms of economic profit for firms A and B when there are two strategies facing each firm: (1) charge a low price,or (2) charge a high price.The equilibrium in this game (played once) is a dominant strategy equilibrium because

• A)firm B reduces profit by more than firm A if both charge a lower price.
• B)firm B and firm A are of different size.
• C)the best strategy for each firm does not depend on the strategy chosen by the other firm.
• D)there is no credible threat by either firm to "punish" the other if it breaks the agreement.
• E)each firm will charge the higher price.