Refer to the information provided in Table 14.1 below to answer the question that follows.
Table 14.1B's Strategy
?Raise PriceDon't Raise Price?RaiseA's profit $3,000A's profit $10,000?PriceB's profit $3,000B's profit $15,000A's Strategy????Don'tA's profit $15,000A's profit $5,000?RaiseB's profit $10,000B's profit $5,000Refer to Table 14.1. If both firms follow a maximin strategy, the equilibrium in the game is
A. (Raise Price, Raise Price).
B. (Raise Price, Don't Raise Price).
C. (Don't Raise Price, Don't Raise Price).
D. (Don't Raise Price, Raise Price).
Answer: C
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