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D. Tsepo does not invest, Thabo invest 7. Tsepo and Thabo are both in the business of selling ice-cream on the beach front. During lock-

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D. Tsepo does not invest, Thabo invest 7. Tsepo and Thabo are both in the business of selling ice-cream on the beach front. During lock- down they both faced low levels of demand, which resulted in them closing up shop and as a result they both experienced low capacity utilization. The economy has now opened and they resumed business, lucky for them, in the middle of summer as a result they are facing high demand and high-capacity utilization. Thabo and Tsepo are now considering investing more into their businesses. The different investment choices and their payoffs are reflected in the payoff matric below. B's profit Blinvests B does not Invest 100 80 MA Invests 100 -40 As pront -40 10 A does not Invest 80 10 If Tsepo and Thabo are in a virtous cycle the outcomes of the game will be: A. Tsepo invests, Thabo does not invest B. Tsepo invests, Thabo invest C. Tsepo does not invest, Thabo does not invest D. Tsepo does not invest, Thabo invest

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