Use the Following to Answer Question

Multiple Choice

Use the following to answer question:
Figure: Pricing Strategy in Cable TV Market II
-(Figure: Pricing Strategy in Cable TV Market II) Use Figure: Pricing Strategy in Cable TV Market II.Suppose that,after one month,the cable providers follow a tit-for-tat strategy.Eventually,they will achieve a tacit collusive equilibrium at which:

A) both firms set a low price and each earns $90,000.
B) both firms set a high price and each earns $100,000.
C) CableNorth sets a high price and earns $80,000,and CableSouth sets a low price and earns $130,000.
D) CableNorth sets a low price and earns $130,000,and CableSouth sets a high price and earns $80,000.