CHOOSE THE CORRECT ANSWER

Accounting for the airlines and payoff structure below, which of the following statements is true?

Airline A Action 1 Action 2 A keeps price A drops price at $500 to $300 Action 1 Cell 1 Cell 2 B keeps price A: $50.000 A: $60,000 at $500 B: $50,000 B: 0 Airline B Action 2 Cell 3 Cell 4 B drops price A: O A: $30,000 at $300 B: $60,000 B: $30,000