Anime Emporium and Comic Kingdom are the only two comic book retailers in Collegeville. Which of the following is the best explanation for why Comic Kingdom might lower its prices when Anime Emporium does so?
Comic Kingdom has an incentive to cheat to gain at the expense of Anime Emporium.
Comic Kingdom can increase its own profit by considering the actions of Anime Emporium.
Comic Kingdom is engaging in predatory price-setting behavior.
The two retailers are colluding to increase their respective market power.
Neither retailer controls the market, so they are forced to set prices agreeable to consumers.