Answer the Question Based on the Payoff Matrix for a Duopoly

Multiple Choice

Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. If both firms operate independently and actively compete with each other, the most likely profit is

A) $400,000 for firm X and $400,000 for firm Y.
B) $725,000 for firm X and $475,000 for firm Y.
C) $475,000 for firm X and $725,000 for firm Y.
D) $625,000 for firm X and $625,000 for firm Y.