The prisoner's dilemma shown displays the payoffs associated with two firms: Firm A and Firm B. These firms are in an oligopoly and they can choose to either collude or compete.
Given the payoffs in this matrix, Firm A:
A) has a dominant strategy to compete.
B) does not have a dominant strategy.
C) has a dominant strategy to collude.
D) None of these are true.
Correct Answer:
Verified
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