Because the Players Are Prevented from Cooperating, Each Player in a Prisoners

question 75

Multiple Choice

Because the players are prevented from cooperating, each player in a prisoners' dilemma game has a dominant strategy that leaves ________ than if they could cooperate.

• A) them both worse off
• B) them both better off
• C) the first player to confess better off and the other player worse off
• D) the first player to confess worse off and the other player better off

---

Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service.

Average Total Cost

Calculated as the total cost of production (fixed plus variable costs) divided by the total output, indicating the average cost per unit produced.

Average Variable Cost

The total variable costs (costs that vary with production volume) divided by the quantity of output produced, representing the variable cost per unit.