-Consider the Cold War Game Depicted in Figure 3

Multiple Choice

-Consider the Cold War game depicted in Figure 3.6 involving a first and second strike nuclear strategies where !4 represents total annihilation, !L represents significant but "acceptable" losses, and G_US and G_SU represent positive gains to the U.S. and the Soviet Union, respectively. If the players in this game are assumed to be rational, the most likely focal-point equilibrium strategy profile for this game is:
I. {First strike, First strike}.
II. {Second strike, Second strike}.
III. {First strike, Second strike}.
IV. {Second strike, First strike}.
Which of the following is correct?

A) I only.
B) II only.
C) I and II only.
D) III and IV only.
E) This game does not have a equilibrium strategy profile.