The table below shows the payoff matrix in the form of short-run profit for two firms,A and B,for two different strategies,investing in new capital or not investing.
-Refer to the payoff matrix above.The reason the game is a prisoner's dilemma is that
A) both firms choose the same strategy.
B) both firms have a dominant strategy.
C) both firms find that their dominant strategies produce a better outcome than their dominated strategies.
D) both firms find that their dominated strategies produce a better outcome than their dominant strategies.
E) neither firm has a dominant strategy.

Question

The table below shows the payoff matrix in the form of short-run profit for two firms,A and B,for two different strategies,investing in new capital or not investing. 
-Refer to the payoff matrix above.The reason the game is a prisoner's dilemma is that
A) both firms choose the same strategy. 
B) both firms have a dominant strategy. 
C) both firms find that their dominant strategies produce a better outcome than their dominated strategies. 
D) both firms find that their dominated strategies produce a better outcome than their dominant strategies. 
E) neither firm has a dominant strategy.

Quizplus · Accepted Answer

The Answer of The table below shows the payoff matrix in the form of short-run profit for two firms,A and B,for two different strategies,investing in new capital or not investing. 
-Refer to the payoff matrix above.The reason the game is a prisoner's dilemma is that
A) both firms choose the same strategy. 
B) both firms have a dominant strategy. 
C) both firms find that their dominant strategies produce a better outcome than their dominated strategies. 
D) both firms find that their dominated strategies produce a better outcome than their dominant strategies. 
E) neither firm has a dominant strategy.

The Table Below Shows the Payoff Matrix in the Form