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

The firm that should spend the most to speed up its planning is

Firm A which would be willing to spend up to $15.

Question :

The amount that FirmB would then spend to move first is ?

A. $5 because it is an advantage to move first.

B. $5 because it is an advantage to move second.

C. $15 because it is an advantage to move first.

D. $5 because it is unwilling to outbid FirmA for the option of moving first.

E. $0 because it is unwilling to outbid FirmA for the option of moving first.