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.According to the figure:
A)this game has no stable equilibrium.
B)Sarah and Joe will each act in self-interest and achieve a stable, but less than optimum, equilibrium.
C)Sarah and Joe will each act in self-interest and achieve an optimum equilibrium that is stable.
D)Sarah and Joe are incentivized to put forth high effort.

Question

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.According to the figure:
A)this game has no stable equilibrium. 
B)Sarah and Joe will each act in self-interest and achieve a stable, but less than optimum, equilibrium. 
C)Sarah and Joe will each act in self-interest and achieve an optimum equilibrium that is stable. 
D)Sarah and Joe are incentivized to put forth high effort.

Quizplus · Accepted Answer

The Answer of  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.According to the figure:
A)this game has no stable equilibrium. 
B)Sarah and Joe will each act in self-interest and achieve a stable, but less than optimum, equilibrium. 
C)Sarah and Joe will each act in self-interest and achieve an optimum equilibrium that is stable. 
D)Sarah and Joe are incentivized to put forth high effort.

The Figure Shown Represents the Payoffs Involved When Sarah and Joe