Refer to the Payoff Matrix

Multiple Choice

Refer to the payoff matrix. Suppose that Alpha and Beta agree that they will both pursue a high-price strategy. If Beta then cheats on the agreement in order to increase profits, which of the following is true?

A) If this is a repeated game, Alpha can be expected to pursue a low-price strategy in future games.
B) If this is a one-time game, a Nash equilibrium will result.
C) A Nash equilibrium cannot be reached through repeated playing of this game.
D) The game is a negative-sum game.