Use the following to answer questions: Table: Oil Output $$\begin{array} { | l | l | c | c | }
\hline & & \begin{array} { c }
\text { Iran National Oil } \
\text { (profit in millions) }
\end{array} & { } \
\hline & & \text { Restrict Oil Output } & \text { Expand Oil Output } \
\hline \text { Iraq National Oil } & \text { Restrict Oil Output } & \$ 78 , \$ 78 & \$ 60 , \$ 89 \
\hline \text { (profit in millions) } & \text { Expand Oil Output } & \$ 89 , \$ 60 & \$ 65 , \$ 65 \
\hline
\end{array}$$
-(Table: Oil Output) Refer to the table. The situation between Iraq and Iran is similar to a:
A) calibration cramp.
B) prisoner's dilemma.
C) flippant switch.
D) cooperative equilibrium.

Question

Use the following to answer questions: Table: Oil Output $$\begin{array} { | l | l | c | c | } 
\hline & & \begin{array} { c } 
\text { Iran National Oil } \
\text { (profit in millions) }
\end{array} &  { } \
\hline & & \text { Restrict Oil Output } & \text { Expand Oil Output } \
\hline \text { Iraq National Oil } & \text { Restrict Oil Output } & \$ 78 , \$ 78 & \$ 60 , \$ 89 \
\hline \text { (profit in millions) } & \text { Expand Oil Output } & \$ 89 , \$ 60 & \$ 65 , \$ 65 \
\hline
\end{array}$$
-(Table: Oil Output) Refer to the table. The situation between Iraq and Iran is similar to a:
A) calibration cramp.
B) prisoner's dilemma.
C) flippant switch.
D) cooperative equilibrium.

Quizplus · Accepted Answer

The situation is similar to a prisoner's dilemma because both countries would benefit from restricting output, but the dominant strategy for each is to expand output, leading to a less optimal outcome for both.

Use the Following to Answer Questions: Table: Oil Output -(Table: Oil Output) Refer to the Table