-Consider the Two-Stage Game Depicted in Figure 5

Multiple Choice

-Consider the two-stage game depicted in Figure 5.2 involving two companies that enter into an agreement to maximize total profits. The payoffs in this game are in millions of dollars. The optimal strategy for both firms is to:

A) Play X in stage 1 and play Y in stage 2.
B) Play Y in stage 1 and play Z in stage 2.
C) Play X in stage 1 and play Z in stage 2.
D) Play X in stage 1 and stage 2.
E) Play Y in stage 1 and stage 2.