In the Prisoners' Dilemma

question 254

Multiple Choice

In the prisoners' dilemma,

• A)the prisoners easily collude in order to achieve the best possible payoff for both.
• B)only one player has a dominant strategy.
• C)when each player chooses his dominant strategy the players achieve the best joint outcome.
• D)when each player chooses his dominant strategy the players reach a Nash equilibrium.

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Definitions:

Tax Burden

Refers to the economic impact of taxes on an individual, corporation, or market, often measured as a percentage of income or GDP.

Price Elastic

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Per-Unit Tax

A tax that is charged on each unit of a good or service that is sold, often leading to a shift in supply or demand curves.

Buyers

Buyers are individuals or entities that purchase goods or services in the market.