Two computer firms, A and B, are planning to market network systems for office information management. Each firm can develop either a fast, high-quality system (High), or a slower, low-quality system (Low). Market research indicates that the resulting profit to each firm for the alternative strategies are given by the payoff matrix

Firm B

High Low

Firm A High: 40, 40 85, 70

Low: 70, 75 15, 5

Suppose that both firms try to maximize profit, but that Firm A has a head start in planning and can commit first. Now what will be the outcome? The outcome if Firm A has a head start is for

A. Firm A to first choose high and then Firm B to choose high.

B. Firm A to first choose low and then Firm B to choose high.

C. Firm A to first choose low and then Firm B to choose low.

D. Firm A to first choose high and then Firm B to choose low.

E. none of the above.