-Consider the Noncooperative, Static, Pricing Game Depicted in Figure 3

Multiple Choice

-Consider the noncooperative, static, pricing game depicted in Figure 3.2. Firms A and B can charge a high price or a low price for their products. Payoffs are in thousands of dollars. If larger payoffs are preferred, the Nash equilibrium strategy profile for this game is: I. {High price, High price}.
II) {High price, Low price}.
III) {Low price, High price}.
IV) {Low price, Low price}.
Which of the following is correct?

A) I only.
B) II only.
C) II or III only.
D) II and III only.
E) I and IV only.