If a market situation is an example of a prisoners' dilemma, society can benefit by preventing the firms in the market from cooperating with each other.

Question

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In a prisoners' dilemma, each firm has an incentive to act in its own self-interest, which often leads to a suboptimal outcome for society as a whole. By preventing the firms from cooperating with each other, it reduces the likelihood of collusion and creates a more competitive market, which can potentially lead to lower prices and better outcomes for consumers.

If a Market Situation Is an Example of a Prisoners