If Firm a and Firm B Are Playing a Finitely

Multiple Choice

If Firm A and Firm B are playing a finitely repeated game in which they both believe there is a 90 percent chance that the game will continue each period, all of the following are true except which one?

A) Both managers will worry about punishment from cheating.
B) Tacit collusion is not possible.
C) Both firms can earn higher profit by cooperating.
D) There is not an end- game problem.