Refer to the Information Provided in Table 14 -Refer to Table 14

Refer to the information provided in Table 14.4 below to answer the question that follows.
Table 14.4
B's Strategy
$$\begin{array} { l l l l } \hline & \text { Raise Price } & \text { Don't Raise Price } \\\hline & \text { Raise } \text { A's profit } \$ 6,000 & \text { A's profit } \$ 20,000 \\& \text { Price } \text { B's profit } \$ 6,000 & \text { B's profit } \$ 30,000 \\\text { A's Strategy } & & & \\& \text { Don't A's profit } \$ 30,000 & \text { A's profit } \$ 10,000 \\& \text { Raise } & B ^ { \prime } \text { s profit } \$ 20,000 & \text { B's profit } \$ 10,000\end{array}$$
-Refer to Table 14.4. Firm A?s optimal strategy is

A) to not raise the price of its product.
B) to raise the price of its product.
C) dependent on what Firm B does.
D) indeterminate from this information, as no information is provided on Firm A?s risk preference.

Correct Answer:

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