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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

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 profits to each firm for the alternative strategies are given by the following payoff matrix:

Firm B

High

Low

Firm A

High

50, 40

60, 45

Low

55, 55

15, 20

  1. Suppose Firm B could make its decision first. The outcome of this game in that case would be

A.

B chooses High and A chooses Low

B.

B chooses High and A chooses High

C.

B choosesLow and A chooses Low

D.

B choosesLow and A chooses High

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