Multiple Choice
Refer to the normal-form game of price competition in the payoff matrix below. 
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.
Correct Answer:
Verified
Correct Answer:
Verified
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