Which of the following statements is true?

Question

Quizplus · Accepted Answer

Government can remove individuals from a prisoner's dilemma setting by changing the payoff matrix. This can be done through policies that incentivize cooperation, such as offering benefits for individuals who choose to cooperate rather than defect in a game. The government can also impose penalties or punishments for individuals who defect, thereby changing the payoff matrix and potentially leading to a more cooperative outcome. This can be done in various market structures, and is not limited to a perfectly competitive market. Options A and B are not true as government intervention can indeed make individuals better off in a prisoner's dilemma setting, and it is not necessary for the government to charge a tax. Option D is false as the ability to remove individuals from a prisoner's dilemma setting does not depend on the type of market structure.

Which of the Following Statements Is True