​What is the Nash equilibrium of this one-shot game?

A) ​Firm A will charge a lower price and firm B will charge a lower price
B) Firm A will charge a higher price and firm B will charge a lower price
C) Firm A will charge a lower price and firm B will charge a higher price
D) ​Firm A will charge a higher price and firm B will charge a higher price

Nash Equilibrium

A concept in game theory where no player can gain by changing their strategy while the other players keep theirs unchanged.

Normal Form Game

A representation of strategic interactions in game theory, highlighting the strategies and payoffs available to players.

Price Competition

A market situation where businesses attempt to attract customers by systematically lowering the prices of their goods or services, often resulting in narrower profit margins.