Suppose There Are Only Two Firms in an Industry

Multiple Choice

Suppose there are only two firms in an industry.If they each set a high price,they each earn $5000.If they each set a low price,they each earn $2500.If one firm sets a low price while the other sets a high price,the low-price firm earns $7000 while the high-price firm earns $1000.Does a prisoners' dilemma exist?

A) yes,because there is always a prisoner's dilemma in game theory
B) it cannot be determined from the information provided
C) yes,the Nash equilibrium does not maximize the joint payoff
D) no,the Nash equilibrium does not maximize the joint payoff
E) no,the Nash equilibrium does not maximize the individual payoff