In the Game Shown Below,firms 1 and 2 Must Independently

question 101

Multiple Choice

In the game shown below,firms 1 and 2 must independently decide whether to charge high or low prices. $\begin{array}{l}\quad\quad\quad\quad\quad\text { Firm Two }\\\text { Firm One }\begin{array}{|l|l|l|}\hline & \text { High Price } & \text { Low Price } \\\hline \text { High Price } & (10,10) & (5,-5) \\\hline \text { Low Price } & (5,-5) & (0,0) \\\hline\end{array}\end{array}$ Suppose the game is infinitely repeated.Then the "best" the firms could do in a Nash equilibrium is to earn ___ per period.

• A) (0, 0)
• B) (5, -5)
• C) (-5, 5)
• D) (10, 10)

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