Construct a payoff matrix for the following scenario: Two firms, A and B, can either set a high price or a low price. If both set a high price, they earn \$10 million each. If both set a low price, they earn \$5 million each. If one sets a high price and the other sets a low price, the firm with the low price earns \$15 million, and the firm with the high price earns \$2 million. What is the dominant strategy for each firm?

• A. Both firms have a dominant strategy to set a high price.
• B. Firm A has a dominant strategy to set a high price, while Firm B does not.
• C. Both firms have a dominant strategy to set a low price.
• D. Neither firm has a dominant strategy.

Answer: (C)