The firms Trick and Gear form a cartel to collude to maximize profit. If this game is nonrepeated, the Nash equilibrium is
A) both firms cheat on the agreement.
B) both firms comply with the agreement.
C) Trick cheats, while Gear complies with the agreement.
D) Gear cheats, while Trick complies with the agreement.
E) unknown.
Correct Answer:
Verified
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