Two firms are creating apps with their profits in the payoff matrix below: Firm B? $.99 app$1.99 appFirm A$.99 app($1m, $1m)($100k, $5m)?$1.99 app($6m, $120k)($250k, $250k)Without collusion, what will each firm decide to sell their app for?
A. Firm B sells the app for $.99 while Firm A sells the app for $1.99
B. Both firms will sell the app for $.99
C. Both firms will sell the app for $1.99
D. Firm A sells the app for $.99 while Firm B sells the app for $1.99
Answer: C
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