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In the figure depicted to the right, suppose Jack promises Jill that if she picks the high price, he will too. Is this promise credible?
In the figure depicted to the right, suppose Jack promises Jill that if she picks the high price, he will too. Is this promise credible? O A. No, because by instead picking the low price, Jack's profit will increase. High Price Jill: $9,000 Jack: $9,000 O B. No, because this would require Jill and Jack to form a cartel. Jack 3 O C. No, because by picking the high price, Jill and Jack will be engaging in High Price Jill: $3,000 illegal price-fixing. Jack: $12,500 Low Price O D. Yes, because this will jointly maximize both Jack and Jill's profits. Jill High Price 2 Jill: $12,500 Low Price Jack: $3,000 Jack Jill: $8,000 Low Price Jack: $8,000
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