The Market for Bagels in Charlottetown,PEI Contains Two Firms: BagelWorld

Multiple Choice

The market for bagels in Charlottetown,PEI contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU) .The owners of the two firms decide to fix the price of bagels.The table shows the total revenue the firms will collect if they abide by the price-setting agreement or if they cheat on the agreement.
-Refer to the payoff matrix above.This game is __________ because __________.

A) not a prisoner's dilemma;both firms cheating has the highest payoff
B) a prisoner's dilemma;both firms abiding has the highest payoff
C) a prisoner's dilemma;both firms cheating has the highest payoff
D) not a prisoner's dilemma;neither firm has a dominant strategy
E) not a prisoner's dilemma;neither firm has a dominated strategy