Scenario 17-1 Assume That the Countries of Irun and Urun Are the Are

Multiple Choice

Scenario 17-1
Assume that the countries of Irun and Urun are the only two producers of crude oil.Further assume that both countries have entered into an agreement to maintain certain production levels in order to maximize profits.In the world market for oil, the demand curve is downward sloping.
-Refer to Scenario 17-1.In a nonrepetitive game,what is the dominant strategy of Irun when production levels are in accordance with the collusive agreement

A) increase production only after Urun increases production
B) decrease production only after Urun increases production
C) unilaterally decrease production
D) unilaterally increase production