Consider an Example of the Prisoner's Dilemma Where 2 Firms

question 74

Multiple Choice

Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either $100 or $180.If both firms bid the same price,the job is shared equally and each firm earns half the value of its bid.Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero) .The cooperative outcome in this situation is

• A)both firms bid $100.
• B)both firms bid $180.
• C)one firm bids $100,the other firm bids $180.
• D)both firms bid $50.
• E)both firms bid $90.

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Definitions:

Ruff Degradation

A chemical process used to shorten the carbon chain of carbohydrates by one carbon atom via oxidation.

Aldaric Acid

A type of sugar acid obtained by the oxidation of both the aldehyde and primary alcohol groups of an aldose.

Ruff Degradation

A chemical process used to shorten the carbon chain of sugars by one carbon atom, involving the oxidation of an aldose sugar to the corresponding aldonic acid, followed by its decarboxylation.

D-aldopentoses

A type of sugar containing five carbon atoms, including an aldehyde group at the first carbon.