The prisoner's dilemma shown displays the payoffs associated with two firms: Firm A and Firm B. These firms are in an oligopoly and they can choose to either collude or compete.
These two firms are likely to collude only if:
A) this is a repeated game.
B) this is a one-time game.
C) the government regulates this market.
D) they are the only two firms with dominant market share.
Correct Answer:
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