Consider an example of theprisoner's dilemma where 2 firms are making sealed bids on ahighway-construction contract and each firm is allowed to bid either $80 million or $110 million. If both firms bid the sameprice, the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and receives the full value of its bid(and the other bidder earnszero). The cooperative outcome in this situation is

A.

one firm bids $80 million, the other firm bids $110 million.

B.

both firms bid $80 million.

C.

both firms bid $55 million.

D.

both firms bid $40 million.

E.

both firms bid $110 million.