-Brian and Matt Own the Only Two Bicycle Repair Shops

Multiple Choice

-Brian and Matt own the only two bicycle repair shops in town.Each must choose between a low price for repair work and a high price.The yearly economic profits from each strategy are indicated in Figure 11-12.The upper right side of each rectangle shows Brian's profits;the lower left side shows Matt's profits.Which of the following statements is correct for a one-trial game?

A) The market equilibrium price is the high price.
B) A market equilibrium price cannot be established unless Brian and Matt collude.
C) A market equilibrium price cannot be established unless Brian or Matt engages in tit-for-tat strategy.
D) A market equilibrium price cannot be established without repeated trials.
E) The market equilibrium price is the low price.