The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement.
For Bagel World, ________ is a ________.
A. cheating on the agreement; dominated strategy
B. abiding by the agreement; dominant strategy when Bagels'R'Us also abides
C. cheating on the agreement; dominant strategy
D. abiding by the agreement; dominant strategy
Answer: C
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