Use the Following to Answer Question

Multiple Choice

Use the following to answer question:
Table 12.17
-(Table 12.17) The payoffs represent profits in millions of dollars. In this infinitely repeated game, Firm A and Firm B agree to cooperate and not offer warranty coverage. Each firm follows a grim trigger strategy. At what value of d is Firm A indifferent between keeping the agreement with Firm B and cheating on it?

A) 0.2
B) 0.4
C) 0.6
D) 0.8