Consider a market with two​ firms, Kellogg and​ Post, that sell breakfast cereals. Both companies must choose whether to charge

Consider a market with two​ firms, Kellogg and​ Post, that sell breakfast cereals. Both companies must choose whether to charge a high price ​($5. 00 ​) or a low price ​($3. 50 ​) for their cereals. These price​ strategies, with corresponding​ profits, are depicted in the payoff matrix to the right. ​ Kellogg’s profits are in red and​ Post’s are in blue. What is the cooperative equilibrium for this​ game? A. The cooperative equilibrium is for Kellogg to choose a price of ​$3. 50 and Post to choose a price of ​$5. 0. B. The cooperative equilibrium is for Kellogg and Post to both choose a price of ​$3. 50. C. The cooperative equilibrium is for Kellogg and Post to both choose a price of ​$5. 0. D. A cooperative equilibrium does not exist for this game. E. The cooperative equilibrium is for Kellogg to choose a price of ​$5. 00 and Post to choose a price of ​$3. 50