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Determine whether firms a and b face the prisoners

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Reference no: EM131719144

From the following payoff matrix, where the payoffs refer to the profits that firms A and B earn by cheating and not cheating in a cartel,

(a) Determine whether firms A and B face the prisoners' dilemma. 

(b) What would happen if we changed the payoff in the bottom left cell to (5.5)

Reference no: EM131719144

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