What Is True About the Following Payoff Matrix A) Only Player a Has a Dominant Strategy

question 48

Multiple Choice

What is true about the following payoff matrix? $\begin{array} { | l | l | c | } \hline & { \text { A: not cooperate } } & \text { A: cooperate } \\\hline \text { B: do not cooperate } & \text { A: } 2 , \text { B: } 2 & \text { A: } 1 , \text { B: } 3 \\\hline \text { B: cooperate } & \text { A: } 3 , \text { B: } 1 & \text { A: } 0 , B : 0 \\\hline\end{array}$

• A) Only player A has a dominant strategy.
• B) Only player B has a dominant strategy.
• C) Both player A and player B have dominant strategies.
• D) Neither player A nor player B has a dominant strategy.

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Definitions:

Rent-Seeking Activities

Efforts to increase one’s share of existing wealth without creating new wealth, typically through manipulation of the economic environment.

Administrative Costs

Expenses associated with the general operation of a business or organization, including salaries of non-revenue generating staff, office supplies, and utilities.

Environmental Costs

The economic costs associated with environmental damage or the degradation of natural resources, including clean-up and preventive measures.