Suppose That the Best-Response Pricing Functions for Firms a and B

Multiple Choice

Suppose that the best-response pricing functions for firms A and B are P_A = 0.22 + 0.5P_B and P_B = 0.10 + 0.2P_A, respectively. The Nash equilibrium strategy profile for this static game with continuous strategies is:

A) {$0.30, $0.16}.
B) {$0.27, $0.15}.
C) {$0.22, $0.10}.
D) {$0.27, $0.16}.
E) None of the above are correct.