Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Pricing Strategy in Cable TV Market II
-(Figure: Pricing Strategy in Cable TV Market II) Look at the figure Pricing Strategy in Cable TV Market II. The Nash equilibrium in the cable TV market occurs when:

A) both firms set a low price and each earns $90,000 per month.
B) both firms set a high price and each earns $100,000 per month.
C) CableNorth sets a high price and earns $80,000 per month, and CableSouth sets a low price and earns $130,000 per month.
D) CableNorth sets a low price and earns $130,000 per month, and CableSouth sets a high price and earns $80,000 per month.