The Figure Shown Represents the Choices and Payoffs (Company Profits)of

Multiple Choice

The figure shown represents the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to compete with these prices. The Rock Shop is trying to decide whether or not it should enter the market.If MiiTunes and The Rock Shop are faced with the choices outlined in the figure, what outcome can we predict?

A) MiiTunes will charge high prices and The Rock Shop will not enter the market.
B) There is more than one stable outcome to this game.
C) There is no stable outcome to this game.
D) None of these statements are true.