The prisoners Dilemma Game demonstrates that ?
Correct answer: D. players are better off if they co-operate
- A. players are better of to act independently
- B. monopoly is better than competition
- C. people will always cheat
- D. players are better off if they co-operate
Explanation
The Prisoner's Dilemma shows that individually rational choices can leave both players worse off than mutual cooperation would. Thus, the players are collectively better off if they cooperate, even though each may have an incentive to defect.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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