In the Prisoner's Dilemma

question 121

Multiple Choice

In the prisoner's dilemma:

• A) the outcome obtained when both confess is worse for each than the outcome they would have obtained had they both remained silent.
• B) whatever the other does, each is better off confessing than remaining silent.
• C) we see a conflict between group and individual rationality.
• D) all of the above

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Definitions:

Variable Resources

Inputs that change in quantity with levels of production, such as raw materials and labor.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

MC

Marginal Cost, the change in total production cost that comes from making or producing one additional unit.