Refer to the Normal-Form Game of Price Competition in the Payoff

Multiple Choice

Refer to the normal-form game of price competition in the payoff matrix below. $\begin{array}{c}\text { Firm B }\\\text { Firm A}\begin{array}{|l|l|l|} \hline & \text { Low Price } & \text { High Price } \\\hline & & \\\text { Low Price } & 0,0 & 50,-10 \\\hline & & \\\text { High Price } & -10,50 & 20,20\\\hline\end{array}\end{array}$ Suppose the game is infinitely repeated,and the interest rate is 10 percent.Both firms agree to charge a high price,provided no player has charged a low price in the past.If both firms stick to this agreement,then the present value of firm A's payoffs are:

A) 220.
B) 110.
C) 330.
D) 550.