Multiple Choice
If two firms that form a cartel agreement are in a prisoner's dilemma game, then
A) both firms will have an incentive to break the agreement.
B) only one firm will have an incentive to break the agreement.
C) both firms will be better off if they hold to the agreement than if they break it.
D) a and c
E) b and c
Correct Answer:
Verified
Correct Answer:
Verified
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