Mary and Sam are the only two growers who provide organically grown corn to a local grocery store.They know that if they cooperated and produced less corn, they could raise the price of the corn. If they work independently, they will each earn $100. If they decide to work together and both lower their output they can each earn $150. If one person lowers output and the other does not, the person who lowers output will earn $0 and the other person will capture the entire market and will earn $200.{The table belowrepresents the choices available to Mary and Sam.}

*What is the best choice for Sam if he is sure that Mary will cooperate?

*If Mary thinks Sam will cheat, what should Mary do and why?

*What is the prisoner's dilemma result?

Note:A = Work independently; B = Cooperate and Lower Output.Each table entry lists Sam's earnings first, and Mary's earnings second.