Use the Following to Answer Question 2- 4

Multiple Choice

Use the following to answer question 2- 4.
Consider the following information for a simultaneous move game: If you charge a low price (LP) and your rival charges a LP,you each will earn $5 million in profits.If both charge a high price (HP) ,each will each earn $10 million in profits.However,if one charge a LP and the other does not,the firm that charges a LP will earn $15 million and the other firm will earn $1 million.
-If both firms plan to be in business for one-year,the Nash Equilibrium will be

A) For each firm charge LP
B) For neither firm to charge LP
C) For one firm to charge LP and the other HP
D) None of the above.