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 the businesses last forever,then the Nash Equilibrium is

A) for one firm to charge a HP forever
B) for your firm charge a LP when the other firm does
C) for each firm to charge HP until the rival does,and then to charge a LP forever.
D) for each firm to charge LP until the rival does,and then to charge a HP forever.