A Tit-For-Tat Strategy in a Two-Firm Balanced Oligopoly Results in

Multiple Choice

A tit-for-tat strategy in a two-firm balanced oligopoly results in

A) A Nash equilibrium
B) one firm setting price and announcing that it would match whatever price its rival firm charges
C) both firms competing as if the market were perfectly competitive
D) both firms colluding to set and maintain relatively high prices
E) one firms punishing its rival for setting price above its own