The above table shows the payoffs that either Darrin or Rob receive depending on whether they choose a high or a low price strategy. The predicted outcome is A. Darrin - Low Price; Rob - Low Price. B. Darrin - Low Price; Rob - High Price. C. Darrin - High Price; Rob - Low Price. D. Darrin - High Price; Rob - High Price.

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Risk and Uncertainty

Uncertainty refers to a situation when there is one possible outcome of a decision but where the probability of occurrence of each particular outcome is not known or cannot be estimated.