39. E Soda and R Soda are the only two firms in the soft-drink industry. The companies cannot cooperate. Each firm can follow a high-price strategy or a low-price strategy for pricing its product. In the payoff matrix below, the first entry in each cell shows the profits to E Soda and the second entry shows the profits to R Soda. R Soda Low Price High Price Low Price $25, $25 $90, $15 E Soda High Price $15, $90 $75, $75 Given the information in the payoff matrix, it can be concluded that (A) neither E Soda nor R Soda has a dominant strategy (B) E Soda has a dominant strategy but R Soda does not (C) R Soda has a dominant strategy but E Soda does not (D) both firms will choose the high-price strategy (E) both firms will choose the low-price strategy 40. A firm with market power engages in price discrimination to