Reffonomics Video -- Oligopoly (Prisoners' Dilemma, Part I)

After watching the video, scroll down to take the three multiple choice questions.






1. A prisoners' dilemma indicates there is

A) collusion.
B) only one dominant strategy for one prisoner.
C) never a dominant strategy.
D) only one prisoner who is going to go to jail.
E) the same dominant strategy for both entities even though the payout may be higher for one entity compared to the other entity.





2. Bonnie's decision is based upon

A) rational self interest.
B) best outcome for her.
C) the years in jail saved by confessing compared to remaining silent.
D) her choices shown horizontally on the graph.
E) all of the above answers are correct.





3. Which of the following statements is correct?

A) Bonnie's best outcome is 3 years.
B) Clyde's best outcome is 6 years.
C) Bonnie should confess and serve 5 years.
D) Clyde should confess and serve 8 years.
E) all of the above statements are correct.




Reffonomics College eTextbook

Reffonomics High School eTextbook

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Cell Phone Graphing Activities

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FRQs Macroeconomics

Steven Reff's Resume/Vitae