Situation 37-2 Dan and Ann Live in the Same Community

Multiple Choice

Situation 37-2 Dan and Ann live in the same community and both can participate in two activities, producing and stealing.
Refer to Situation 37-2.  Both Dan and Ann realize that they are better off producing and not stealing from each other than producing and stealing from each other.  They agree not to steal from each other.  There is no enforcer of their agreement to not steal.  It is likely that

A) Dan and Ann are in a prisoner's dilemma setting.
B) Dan is in a prisoner's dilemma setting but Ann is not.
C) Ann is in a prisoner's dilemma setting but Dan is not.
D) neither Dan nor Ann is in a prisoner's dilemma setting.