Oscar -Oscar and Felix Are the Only Firms That Clean Offices

Multiple Choice

Oscar

-Oscar and Felix are the only firms that clean offices in a large city. They agree to operate as a cartel. The payoff matrix shows the economic profit that each firm can make. If the game is played repeatedly and Felix and Oscar both use a tit- for- tat strategy, then _______.

A) Felix will make - $2 million of economic profit and Oscar will cheat
B) Felix will make $10 million of economic profit and Oscar will cheat
C) Felix and Oscar will each make $10 million of economic profit
D) Felix and Oscar will each make $1 million of economic profit