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Consider an Example of the Prisoner's Dilemma Where 2 Firms

Question 41

Multiple Choice

Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on ahighway-construction. The cooperative outcome in this situation is


A) both firms bid $100 million.
B) both firms bid $120 million.
C) both firms bid $50 million.
D) one firm bids $100 million, the other firm bids $120 million.
E) both firms bid $60 million.

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