Table: Russia, Saudi Payoff Table Suppose That the Oil Market

Multiple Choice

Table: Russia, Saudi Payoff Table Suppose that the oil market is dominated by two large firms, Saudi Arabia and Russia. Both Saudi Arabia and Russia have two choices or strategies: cooperate by cutting back production or cheat by increasing production. The payoff table below shows the potential revenues associated with each firm's strategies. For instance, if Saudi Arabia cheats and Russia cooperates then the payoff to Saudi Arabia is $1,000 and the payoff to Russia is $400. Reference: Ref 15-5 (Table: Russia, Saudi Payoff Table) Refer to the table. The dominant strategies are:

A) cheat for both Russia and Saudi Arabia.
B) cooperate for both Russia and Saudi Arabia.
C) cheat for Russia and cooperate for Saudi Arabia.
D) cooperate for Russia and cheat for Saudi Arabia.