-The Table Above Shows the Payoff Matrix for a Prisoners

question 253

Multiple Choice

-The table above shows the payoff matrix for a prisoners' dilemma. In the Nash equilibrium

• A) both prisoners get 3 years in jail.
• B) both prisoners get 2 years in jail.
• C) both prisoners get 1 year in jail.
• D) both prisoners get 10 years in jail.

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Definitions:

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Edited and Typeset

The processes of revising and arranging text for publication, including correcting grammar, formatting, and styling the layout.

Marginal Cost

The price required to create one more unit of a particular good or service.

Profits

The excess of revenues over costs and expenses in a business or economic transaction.