SCENARIO: PAYOFF MATRIX the Payoff Matrix Shows Outcomes of Various Strategies That a Strategies

question 136

Multiple Choice

SCENARIO: PAYOFF MATRIX
The payoff matrix shows outcomes of various strategies that a
Home and Foreign country can follow to decide to regulate or not
Regulate pollution.The columns give Foreign's actions, and the
Rows give Home's actions.The values in the upper right­hand
Side of each element give Foreign's net benefits; the values in
The lower left­hand side of each element give Home's net
Benefits.Net benefits are the environmental benefits from
Regulation minus costs associated with installing pollution control
Equipment.
(Scenario: Payoff Matrix) How can you tell that the governments
Of each country favor producer profits over consumer well­being
When net benefits are calculated?

• A)A country's net benefits are higher when the other country regulates pollution.
• B)A country's net benefits are lower when the other country regulates pollution.
• C)A country's net benefits are lower when it regulates pollution than when it does not.
• D)A country's net benefits are higher when it regulates pollution than when it does not.