Refer to the above payoff matrix for the profits (in $ millions) of two firms (A and B) and two pricing strategies (high and low). Which of the following is the outcome of the dominant strategy without cooperation?
A. Both firm A and firm B choose the low price.
B. Firm A chooses the high price while firm B chooses the low price.
C. Both firm A and firm B choose the high price.
D. Firm A chooses the low price while firm B chooses the high price.
Answer: A
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