Topic B Problem: Imagine you have two competing athletes who have the option to use an illegal and/or dangerous drug to enhance their performance (i.e., dope). If neither athlete dopes, then neither gains an advantage. If only one dopes, then that athlete gains a massive advantage over their competitor, reduced by the medical and legal risks of doping. However, if both athletes dope, the advantages cancel out, and only the risks remain, putting them both in a worse position than if neither had been doping.

What class concept (from Chapters 15-18) best describes this situation? Using this class concept, what outcome do we expect from these two athletes? Are there any factors that could change the outcome predicted by this course concept?

Chapter 15 monopoly

Chapter 16 Price Discrimination

Chapter 17 Monopolistic Competition

Chapter 18 Oligopoly and Game Theory

Please using the above concepts to solve this problem in a paragraph.

Examples of class concepts:

oligopoly monopolistic competition advertising game theory collusion cartel nash equilibrium prisoner's dilemma dominant strategy common resource factors of production production function marginal product of labour diminishing marginal product value of marginal product leisure capital

Thank you!