This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.If Joe and Sarah are faced with the game in the figure shown, we can see that:
A. neither student has a dominant strategy.
B. Sarah has a dominant strategy, but Joe does not.
C. Joe has a dominant strategy, but Sarah does not.
D. both students have a dominant strategy.
Answer: D
Economics
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