Mexico and OPEC both produce crude oil.Realizing that it would be in their best interest to form an agreement on production goals,a meeting is arranged and an informal,verbal agreement is reached.If both Mexico and OPEC stick to the agreement,OPEC will earn profit of $200 million and Mexico will earn profit of $100 million.If both Mexico and OPEC cheat,then OPEC will earn $175 million and Mexico will earn $80 million.If only OPEC cheats,then OPEC earns $185 million and Mexico $60 million.If only Mexico cheats,then Mexico earns $110 million and OPEC $150 million.
-Refer to the information given above.The strategies in this game are
A) to increase output.
B) to cheat.
C) to stick to the agreement.
D) to either stick to the agreement or to cheat.
E) both to stick to the agreement and to cheat.

Question

Mexico and OPEC both produce crude oil.Realizing that it would be in their best interest to form an agreement on production goals,a meeting is arranged and an informal,verbal agreement is reached.If both Mexico and OPEC stick to the agreement,OPEC will earn profit of $200 million and Mexico will earn profit of $100 million.If both Mexico and OPEC cheat,then OPEC will earn $175 million and Mexico will earn $80 million.If only OPEC cheats,then OPEC earns $185 million and Mexico $60 million.If only Mexico cheats,then Mexico earns $110 million and OPEC $150 million. 
-Refer to the information given above.The strategies in this game are
A) to increase output. 
B) to cheat. 
C) to stick to the agreement. 
D) to either stick to the agreement or to cheat. 
E) both to stick to the agreement and to cheat.

Quizplus · Accepted Answer

The strategies in the game involve choosing between sticking to the agreement or cheating, as these are the two main options available to the players in the context of a strategic decision-making scenario.

Mexico and OPEC Both Produce Crude Oil