??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 12.2The Nash Equilibrium in the game shown in Table 12.2 is the cell in which:
A. both firms choose a low price.
B. both firms choose a high price.
C. Firm 1 chooses a low price and Firm 2 chooses a high price.
D. Firm 2 chooses a low price and Firm 1 chooses a high price.
Answer: A
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