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The Prisoner's Dilemma Shown Displays the Payoffs Associated with Two

Question 137

Multiple Choice

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. 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.   What is the outcome of this game? A) Both firms will collude and act like a joint monopolist. B) Both firms will compete. C) Firm A will compete, and Firm B will collude. D) Firm B will compete, and Firm A will collude. What is the outcome of this game?


A) Both firms will collude and act like a joint monopolist.
B) Both firms will compete.
C) Firm A will compete, and Firm B will collude.
D) Firm B will compete, and Firm A will collude.

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