The following table shows the pay-off matrix for West Ltd. and East Ltd. in an oligopolistic market. Each firm has two options: co-operate or start a price war. Refer to the table to answer the question. 
West Ltd. earns its maximum pay-off when _____.
Definitions:
Variable Cost
Costs that change in proportion to the level of production or sales activity, such as raw materials and direct labor costs.
Fixed Costs
Fixed overheads that stay the same no matter how much is produced or sold, including rental fees or staff salaries.
Margin of Safety
The difference between actual or projected sales and the break-even point, indicating the amount by which sales can drop before a business incurs a loss.
Break-even Point
The level of sales at which total revenues equal total costs, and the business makes no profit but also incurs no loss.
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