The Table Below Shows the Payoff (Profit) Matrix of Firm

Multiple Choice

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) .Table 12.2

-The firms in an oligopoly market structure agree to collude because:

A) it helps them to earn more profits.
B) each firm wants to know the strategy of its rivals.
C) each firm wants to charge a lower price for its product than its rivals.
D) the firms want to maintain a healthy relationship with each other.
E) it helps them to enjoy economies of scale.