Microsoft, Sony, and Nintendo Are the Three Principal Firms in the Video

Multiple Choice

Microsoft, Sony, and Nintendo are the three principal firms in the video game console market. How much price competition is most likely for video game makers?

A) There is almost none; the market sets the price.
B) There is some competition within a range of prices.
C) There is generally a price leader that sets the price.
D) Each firm is aware of each other's prices and may adjust prices based on those of the other firms.
E) Price is set by the seller but regulated by the government.