-Consider the Game Depicted in Figure 13

Multiple Choice

-Consider the game depicted in Figure 13.7 Payoffs are in millions of dollars. Suppose that if firm A charges a high price there is a 25 percent chance that firm B will charge a high price and an 75 percent chance that firm B will charge a low price. If firm A charges a low price there is an 75 percent change that firm B will charge a high price and a 25 percent chance that firm B will charge a low price. If firm A is risk neutral, what is the subgame perfect equilibrium for this game?

A) {High price 6 High price}
B) {High price 6 Low price}
C) {Low price 6 High price}
D) {Low price 6 Low price}