The Market for Bagels in Charlottetown,PEI Contains Two Firms: BagelWorld

Multiple Choice

The market for bagels in Charlottetown,PEI contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU) .The owners of the two firms decide to fix the price of bagels.The table shows the total revenue the firms will collect if they abide by the price-setting agreement or if they cheat on the agreement.
-Refer to the payoff matrix above.If the two firms were both to choose their dominated strategies,their combined revenue would be ________ higher than if they were to choose their dominant strategies.

A) $80
B) $45
C) $40
D) $10
E) $5