Which of the following is an example of the prisoners' dilemma?
A) Firms in an industry increase their advertising expenditures, causing profits to rise.
B) A country provides subsidies to high technology firms, which are consequently able to increase market share.
C) Members of a commodity cartel produce excess output, driving down market price.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

In the prisoners' dilemma, individuals acting in their own self-interest lead to a worse outcome for the group. In option C, cartel members produce excess output to increase individual profits, but this drives down the market price, harming all members collectively.

Which of the Following Is an Example of the Prisoners