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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 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

If both firms make their decisions at the same time and follow maximin (low-risk) strategies, what will the outcome be? The outcome if both firms follow maximin strategies is for

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

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

C. Firm A to choose high and Firm B to choose low.

D. Firm A to choose low and Firm B to choose low.

E. none of the above.

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