Prisoner's Dilemma Games Imply That Cooperative Behaviour Between Two People

Multiple Choice

Prisoner's dilemma games imply that cooperative behaviour between two people or two firms always breaks down.But reality teaches us that people and firms often cooperate successfully to achieve their goals.Why do the results from prisoner's dilemma games fail to predict real world results?

A) Prisoner's dilemma games do not permit people or firms to renege on agreements, which often occurs in real word situations.
B) The prisoner's dilemma does not apply to most business situations that are repeated over and over.
C) Prisoner's dilemma games predict the behaviour of people and firms that engage in illegal activity; most people and firms do not resort to illegal activity.
D) Most real world situations involve more than two people or firms; the prisoner's dilemma is only applicable to situations that involve two parties.