Firm A and Firm B are competitors. Each firm can set a high price, a medium price, or a low price. These prices must be Firm A set independently, and Firm A must set its price first. The adjacent game tree shows their profits from different prices. What will be the outcome and why? O A. Firm A sets a high price, and Firm B sets a low price. At this node, Firm B chooses its strategy such that Firm A High Medium Low suffers a loss. Price Price Price O B. Both Firm A and Firm B will set a medium price. At this node, Firm A maximizes profit by choosing its best response to Firm B's best response strategies. Firm B Firm B Firm B O C. Firm A sets a medium price, and Firm B sets a high price. At this node, Firm A maximizes profit by choosing its best response to Firm B's best response strategies. O D. Both Firm A and Firm B will set a high price. At this node, Firm B maximizes profit by choosing its best response High Low High Low High Low Price Price Price to Firm A's strategy. Price Price Price Medium Medium Medium Price Price Price A: $700 A: $-350 A: $950 A: $150 A: $600 A: $250 B: $350 B: $450 B: $200 B: $150 B: $-150 B: $150 A: $250 A: $650 A: $450 B: $700 B: $450 B: $100