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 Bagels'R'Us, ________ is a ________.
A. abiding by the agreement; dominant strategy when Bagel World also abides
B. abiding by the agreement; dominant strategy
C. cheating on the agreement; dominant strategy
D. cheating on the agreement; dominated strategy
Answer: C
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