??Firm 2???High PriceLow PriceFirm 1High PriceFirm 1 earns $100; Firm 2 earns $100Firm 1 earns $25; Firm 2 earns $150?Low PriceFirm 1 earns $150; Firm 2 earns $25Firm 1 earns $50; Firm 2 earns $50Table 12.2In the game shown in Table 12.2, if Firm 1 believes that Firm 2 will choose the high price strategy, Firm 1 should:
A. choose the low price strategy.
B. choose the high price strategy.
C. refuse to play the game because Firm 1 will surely lose.
D. choose a strategy at random because Firm 1 cannot control the outcome.
Answer: A
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