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 at these prices. The Rock Shop is trying to decide whether or not it should enter the market.Which of the following statements about the game in this figure is true?

A) The Rock Shop will choose not to enter.
B) The Rock Shop will choose to enter, and MiiTunes will charge low prices.
C) Neither store has a dominant strategy, so the game's outcome cannot be predicted.
D) The Rock Shop will choose to enter, and MiiTunes will charge high prices.