The Chance a Firm Takes in Defecting from a Cooperative

Multiple Choice

The chance a firm takes in defecting from a cooperative solution to a game is that

A) the firm will immediately suffer lower profits as a result of defecting.
B) the noncooperative solution causes profits to fall.
C) cooperation will result in lower profits in the future.
D) cooperation will be difficult to reestablish and profits will be sacrificed.
E) all firms know the actions of each other.