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You operate in a duopoly in which you and a rival must simultaneously decide each week what price to charge for the product that you

You operate in a duopoly in which you and a rival must simultaneously decide each week what price to charge for the product that you and your rival are selling. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of 3. If you charge different prices, the one charging the higher price loses 5 and the one charging the lower price makes 5.Which of the following statements best describes the equilibrium if this game is played once?

A.

This game is not an example of a Prisoner's Dilemma game

B.

This game is an example of a Prisoner's Dilemma game because both players would be better off at an outcome other than the equilibrium outcome

C.

This game is an example of a Prisoner's Dilemma game beuase one player could earn while the other could earn -5

D.

None of the above

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