Big W -Big W and Kmart Must Decide Whether to Lower Their

Multiple Choice

Big W

-Big W and Kmart must decide whether to lower their prices, based on the economic profits shown in the table above. Which of the following is true?

A) Both Big W and Kmart would jointly be better off if they could each keep their prices high.
B) If Kmart lowers its prices, Big W should keep its prices high.
C) This situation is not a prisoners' dilemma.
D) If Big W lowers its prices and Kmart does not, Big W will make a $20 million economic profit.