In Reference to the Lowe's and Home Depot Example in the Textbook

Multiple Choice

In reference to the Lowe's and Home Depot example in the textbook (prisoner's dilemma) , equilibrium will occur when:

A) both firms set the price at the high price.
B) Lowe's sets the price at the high price and Home Depot sets price at the low price.
C) Lowe's sets the price at the low price and Home Depot sets price at the high price.
D) both firms set the price at the low price.