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Two airlines, Star and Big, are the only two airlines operating flights between Collegeville and Bigtown. Assume they are the only airlines competing. Each airline

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Two airlines, Star and Big, are the only two airlines operating flights between Collegeville and Bigtown. Assume they are the only airlines competing. Each airline can charge either a high price or a low price for a plane ticket. The payoff table shows their payoffs of the two possible choices they can make in each round of competition. The first entry of an ordered pair in this payoff table is for the Star Airline and the second entry is for Big Airline. Big Airline High price Low price Star Airline High Price ($40 million, $40 million) ($0, $50 million) Low Price ($50 million, $0) ($20 million, $20 million) Refer to Scenario 5. Which of the following is correct? O The dominant strategy for the Star Airline is a high price, and the one for the Big Airline is a low price. The dominant strategy for the Star Airline is a low price, and the one for the Big Airline is a high price. O The dominant strategy for both airlines is a high price. O The dominant strategy for both airlines is a low price

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