The dominant strategy for each of the players in the prisoner's dilemma game does not yield the optimal outcome for each player because:
A) each player is misinformed about the decision that has been made by the other player.
B) the players do not understand the consequences of each of the choices they can make.
C) the two players are not allowed to communicate or otherwise cooperate with each other.
D) each player fails to consider how the other player might act.
C
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"Owners of firms in young industries should be willing to incur temporary losses if they believe that those firms will be profitable in the long run.". This observation helps to explain why many economists are skeptical about the
a. national-security argument. b. infant-industry argument. c. unfair-competition argument. d. jobs argument.
A bowed production possibilities curve is consistent with
A. highly specialized resources. B. a decreasing opportunity cost. C. the overutilization of productive resources. D. a technologically inefficient society.