(Scenario: Payoff Matrix) the Payoff Matrix Shows Outcomes of Various

Multiple Choice

(Scenario: Payoff Matrix) The payoff matrix shows outcomes of various strategies that a home and foreign country can follow to decide to regulate or not regulate pollution. The columns give Foreign's actions, and the rows give Home's actions. The values in the upper right-hand corner of each element give Foreign's net benefits; the values in the lower left-hand corner of each element give Home's net benefits. Net benefits are the environmental benefits from regulation minus the costs associated with installing pollution control equipment. How can you tell that the governments of each country favor producer profits over consumer well-being when net benefits are calculated?

A) A country's net benefits are higher when the other country regulates pollution.
B) A country's net benefits are lower when the other country regulates pollution.
C) A country's net benefits are lower when it regulates pollution than when it does not.
D) A country's net benefits are higher when it regulates pollution than when it does not.