Consider the Following Decision Tree

Multiple Choice

Consider the following decision tree.This tree illustrates hypothetical payoffs to General Mills (GM) and Quaker Oats (Q) if they engage in a price war.If GM cuts prices and Quaker Oats follows this behavior:

A) GM loses $10 million.
B) Quaker Oats loses $10 million.
C) GM loses $2 million.
D) Quaker Oats loses $2 million.
E) both firms gain $3 million.