Bert and Ernie are noncolluding oligopolists. If both choose a high price strategy, each makes $40 in profits; if both choose a low price strategy, each makes $30 in profits. If Bert chooses a high price strategy and Ernie chooses a low price strategy, Bert makes $20 in profits and Ernie makes $60 in profits, while if Bert chooses a low price strategy and Ernie chooses a high price strategy, Bert makes $60 in profits and Ernie makes $20 in profits. Which combination of pricing strategies would you expect Bert and Ernie to adopt if they act independently?
A.
Both choose a high price strategy.
B.
Both choose a low price strategy.
C.
Bert chooses a high price strategy and Ernie chooses a low price strategy.
D.
Bert chooses a low price strategy and Ernie chooses a high price strategy.