If Two Firms That Form a Cartel Agreement Are in a Prisoner's

question 22

Multiple Choice

If two firms that form a cartel agreement are in a prisoner's dilemma game, then

• A)both firms will have an incentive to break the agreement.
• B)only one firm will have an incentive to break the agreement.
• C)both firms will be worse off if they hold to the agreement than if they break it.
• D)both firms will have an incentive to hold to the agreement.

---

Definitions:

Corporate Volunteerism

A program where businesses encourage their employees to volunteer their time and skills to community service projects, often as a part of the company's corporate social responsibility efforts.

Golf Shop

A retail store specializing in selling golf equipment, apparel, and accessories for golfers.

Canned Food Drives

Organized collections of non-perishable food items, typically canned goods, donated to support those in need, such as the less fortunate or disaster victims.

Sustainability Critical

Pertains to essential considerations in ensuring that business operations are environmentally sustainable and do not deplete natural resources.