Scenario 16-3 Consider Two Countries, Eudora and Inhabii, That Are Engaged in Engaged

Multiple Choice

Scenario 16-3
Consider two countries, Eudora and Inhabii, that are engaged in an arms race. Each country must decide whether to build new weapons or to disarm existing weapons. Each country prefers to have more arms than the other because a large arsenal gives it more influence in world affairs. But each country also prefers to live in a world safe from the other country's weapons. The following table shows the possible outcomes for each decision combination. The numbers in each cell represent the country's ranking of the outcome.

-Refer to Scenario 16-3.Which of these statements is correct? (i) Eudora is better off building new weapons if Inhabii builds new weapons.
(ii) Eudora is better off building new weapons if Inhabii disarms existing weapons.
(iii) Building new weapons is Eudora's dominant strategy.

A) (i) and (ii)
B) (ii) and (iii)
C) (i) and (iii)
D) (i) , (ii) , and (iii)