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

Question 85

Multiple Choice

In the game depicted below,firms 1 and 2 must independently decide whether to charge high or low prices.  Firm 2 Firm 1 High Price  Low Price  High Price (10,10) (5,5)  Low Price (5,5) (0,0) \begin{array}{c}\text { Firm 2}\\\text { Firm 1}\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} A dominant strategy for firm 1 is:


A) high price.
B) low price.
C) different from firm 1's secure strategy.
D) low price and different from firm 1's secure strategy.

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