Scenario: Consider the Tragedy of the Commons Problem

Multiple Choice

Scenario: Consider the tragedy of the commons problem. Suppose two firms (Row Inc. and Colm Inc.) are involved in a production process that exploits a natural resource. Each firm has two options: 1 and 2. The matrix below shows the game matrix for these two firms. The first number listed in each cell is the payoff to Row Inc., and the second number listed is the payoff to Colm Inc.

-Refer to the scenario above.This game is ________.

A) a zero-sum game for Row Inc. and for Colm Inc.
B) not a zero-sum game for Row Inc. and Colm Inc.
C) a zero-sum game for Row Inc. but not a zero-sum game for Colm Inc.
D) not a zero-sum game for Row Inc. but is a zero-sum game for Colm Inc.