Suppose the Game Is Infinitely Repeated, and the Interest Rate

Multiple Choice

Suppose the game is infinitely repeated, and the interest rate is 10%.Both firms agree to charge a high price, provided no player has charged in low price in the past.If both firms stick to this agreement, then the present value of Firm A's payoffs are:

A) 220.
B) 110.
C) 330.
D) 550.