​Use the Following Case from Question

question 28

Multiple Choice

​Use the following case from question
Two siblings,Bratty Brenda and Tattling Tina are playing a simultaneous hit and tell game.Bratty Brenda can hit Tattling Tina or not and Tattling Tina can tattle on Bratty Brenda or not.Relative to no hitting and no tattling,if Bratty Brenda hits Tattling Tina,and she tattles they both experience a loss of 10.Not telling,gets Tattling Tina a bruise,a loss of 5 but Bratty Brenda gains 5.If she tattles untruthfully,Tattling Tina gets a gain of 5 and Bratty Brenda loses 5.If they get along,no one gets anything
-​If Tattling Tina wants to not be hit,what strategy could she follow

• A)​Threaten to not tell
• B)Always not tell
• C)Threaten to tell
• D)​All of the above

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting extra benefit or profit.

Tax

Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Deadweight Loss

The reduction in economic productivity resulting from a failure to reach or the impossibility of reaching the market equilibrium for a particular product or service.

Excise Tax

A tax on specific goods or services, often with the goal of discouraging their use or generating revenue.