Scenario: You are playing a game of "Friend or Foe?" You and your classmate are taken to two different rooms and asked to choose whether the other is a friend or foe. You are told that if both of you choose "friend," you will get $10 each. However, if both of you choose "foe," neither of you will get anything. If one of you chooses "friend" while the other chooses "foe," the one who chooses "foe" will get $20, while the one who chooses "friend" will get nothing.
-Refer to the scenario above.Which of the following is true for this game in equilibrium?
A) You and your friend will both get $10 each.
B) You and your friend will not get any payoff.
C) You will get $20, while your friend will get $10.
D) You will get $10, while your friend will get $20.
Correct Answer:
Verified
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