Use the Following to Answer Question

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.Suppose Blue Spring charges a high price and Purple Rain does the same.In the next period,Blue Spring charges a low price and Purple Rain incurs a loss.If Purple Rain responds with a tit-for-tat strategy,it will:

A) always charge a low price-the same as its dominant strategy.
B) make random changes in its price so that Blue Spring is left with no systematic strategy.
C) charge a low price in the next period and thereafter charge the same price that Blue Spring charged in the previous period.
D) always charge a high price.