Refer to the figure below. 
If Row Resorts keeps its rates high, then Column Cruises would receive the highest payoff if it:
A. agreed with Row Resorts to reduce their rates at exactly the same time.
B. chose either strategy because it will have the same payoff in either case.
C. offered reduced rates.
D. kept its rates high.
Answer: C
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Entry of new firms into a perfectly competitive market raises the product's price
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