(Figure: Payoff Matrix for Alex and Sybil) Use Figure: Payoff

Multiple Choice

(Figure: Payoff Matrix for Alex and Sybil) Use Figure: Payoff Matrix for Alex and Sybil. Alex and Sybil are the only producers of frozen yogurt in their town. Every week, each decides how much frozen yogurt to produce for the following week. The figure shows the profit per week earned by their two firms. The BEST response for Alex is:
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A) low output.
B) high output.
C) low output when Sybil produces a low output.
D) low output when Sybil produces a high output.