-Consider the Pricing Game Depicted in Figure 4

Multiple Choice

-Consider the pricing game depicted in Figure 4.1 in which the payoffs are in millions of dollars. If this game is infinitely repeated, below what discount rate will cooperation become unstable?

A) 3.33 percent.
B) 5 percent.
C) 6.67 percent.
D) 7.25 percent.
E) 12.5 percent.