What Is True About Threats in the Game in Scenario

Multiple Choice

What is true about threats in the game in Scenario 13.15?

A) Simple can change the equilibrium by means of a credible threat; Boring cannot.
B) Boring can change the equilibrium by means of a credible threat; Simple cannot.
C) Boring can change the equilibrium by means of a credible threat only if it can move before Simple.
D) Simple can change the equilibrium by means of a credible threat only if it can move before Boring.
E) Neither firm has a credible threat with which to change this equilibrium.