-Consider the Static Games Depicted in Figures 10

Multiple Choice

-Consider the static games depicted in Figures 10.3 and 10.4 which summarize in billions of dollars producer and consumer surpluses from alternative export-subsidy strategies by the U.S. and Japan. If this game is played a finite number of times with a certain end, maximizing national welfare:

A) May be possible with the intervention of a multilateral organization such as the World Trade Organization.
B) May not be possible through bilateral negotiations since it will be in the best interest of both countries to defect.
C) May not be possible due to the end-of-game problem.
D) Answers b and c are correct.
E) All of the above are correct.