The figure shown represents the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.If Sarah and Joe are faced with the choices outlined in the figure, what outcome could we predict?
A) Both Joe and Sarah will put forth low effort.
B) Joe will put forth high effort and Sarah will put forth low effort.
C) Joe will put forth low effort and Sarah will put forth high effort.
D) Both Joe and Sarah will put forth high effort.
Correct Answer:
Verified
