Consider a Duopoly Market Where the Players Agree to Collude

Multiple Choice

Consider a duopoly market where the players agree to collude.The single-period prisoner's dilemma game applied to this market generally predicts that:

A) the firms will maintain the collusion agreement.
B) one firm will cheat on the agreement while the other will not.
C) both firms will cheat and the collusion agreement will break down.
D) the firms will be worse off from collusion than cheating.