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    Microeconomics Study Set 3
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    Exam 19: Asymmetric Information
  5. Question
    Investment in Safety at the Firm Level Poses a Prisoners
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Investment in Safety at the Firm Level Poses a Prisoners

Question 3

Question 3

Multiple Choice

Investment in safety at the firm level poses a prisoners' dilemma because


A) if each firm plays its dominant strategy, joint profits are maximized.
B) if each firm plays its dominant strategy, joint profits are not maximized.
C) neither firm has a dominant strategy.
D) the Nash equilibrium is not achieved.

Correct Answer:

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