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In the Game Shown Below,firms 1 and 2 Must Independently

Question 7

Multiple Choice

In the game shown below,firms 1 and 2 must independently decide whether to charge high or low prices.  Firm Two  Firm One  High Price  Low Price  High Price (10,10) (5,5)  Low Price (5,5) (0,0) \begin{array}{l}\quad\quad\quad\quad\quad\text { Firm Two }\\\text { Firm One }\begin{array}{|l|l|l|}\hline & \text { High Price } & \text { Low Price } \\\hline \text { High Price } & (10,10) & (5,-5) \\\hline \text { Low Price } & (5,-5) & (0,0) \\\hline\end{array}\end{array} Which of the following are the Nash equilibrium payoffs (each period) if the game is repeated 10 times?


A) (0, 0)
B) (5, -5)
C) (-5, 5)
D) (10, 10)

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