MBA 701 - Osmani - Exam 4

E) None of the choices are correct

**A firm faces the demand for its product, P = 100 − 0.5 Q, as shown in the figure. It produces under conditions of constant costs in the long run, and LMC = LAC = $12 per unit. If the firm must set a uniform price for the good, what price will it set to maximize its profit in the long run? A) $12 B) $24 C) $25 D) $30 E) None of the choices are correct

B) when it is charging different consumers different prices and the price difference is not based upon cost differences.

**A firm sells its product to two groups of buyers: daytime buyers and nighttime buyers. There are 50 daytime buyers, all of whom have identical demands given by DD in the figure. There are 50 nighttime buyers, all of whom have identical demands given by DN in the figure. The firm's variable costs are constant ( SMC = AVC = $12) and its total fixed cost is $250,000. The marketing director must devise a two-part pricing plan that will maximize the firm's profit. A firm selling in two markets is practicing price discrimination A) anytime it charges different consumers different prices. B) when it is charging different consumers different prices and the price difference is not based upon cost differences. C) when it refuses to sell the good to some group of consumers. D) All of the choices are correct.

D) sell more in A and less in B.

**A firm sells its product to two groups of buyers: daytime buyers and nighttime buyers. There are 50 daytime buyers, all of whom have identical demands given by DD in the figure. There are 50 nighttime buyers, all of whom have identical demands given by DN in the figure. The firm's variable costs are constant ( SMC = AVC = $12) and its total fixed cost is $250,000. The marketing director must devise a two-part pricing plan that will maximize the firm's profit. If a firm is selling a product in two markets, A and B, and the marginal revenue in A is $25 and the marginal revenue in B is $20, the firm should A) charge a higher price in A where MR is higher. B) charge a lower price in B where MR is lower. C) sell more in B and less in A. D) sell more in A and less in B. E) both "charge a higher price in A where MR is higher" and "sell more in B and less in A".

D) both "produce the output at which total marginal revenue equals marginal cost" and "allocate the output so that marginal revenue is the same in each market".

**A firm sells its product to two groups of buyers: daytime buyers and nighttime buyers. There are 50 daytime buyers, all of whom have identical demands given by DD in the figure. There are 50 nighttime buyers, all of whom have identical demands given by DN in the figure. The firm's variable costs are constant ( SMC = AVC = $12) and its total fixed cost is $250,000. The marketing director must devise a two-part pricing plan that will maximize the firm's profit. To maximize profit a price discriminating firm should A) produce the output at which total marginal revenue equals marginal cost. B) allocate the optimal output so the elasticity is the same in each market. C) allocate the output so that marginal revenue is the same in each market. D) both "produce the output at which total marginal revenue equals marginal cost" and "allocate the output so that marginal revenue is the same in each market". E) All of the choices are correct.

D) both "maintaining excess capacity" and "limit pricing".

**A form of strategic entry deterrence is A) forming a cartel. B) maintaining excess capacity. C) limit pricing. D) both "maintaining excess capacity" and "limit pricing". E) All of the choices are correct.

A) profit will increase $4

**A news magazine offers students a discount on the regular subscription rate. The total number of subscriptions is optimal, and, at the current prices, the marginal revenue from the last subscription sold to a student is $6, while the marginal revenue from the last subscription sold to a regular customer is $10. If the magazine sells one more subscription to a regular customer and one less subscription to a student: A) profit will increase $4 B) profit will increase $16 C) profit will decrease $6 D) profit will decrease $10 E) None of the choices are correct

C) offer students a lower discount (raise the price to students).

**A news magazine offers students a discount on the regular subscription rate. The total number of subscriptions is optimal, and, at the current prices, the marginal revenue from the last subscription sold to a student is $6, while the marginal revenue from the last subscription sold to a regular customer is $10. In order to maximize profit, the magazine should A) stop offering students a discount on the regular subscription rate. B) offer students a higher discount (lower the price to students). C) offer students a lower discount (raise the price to students). D) offer all customers the same discount received by the students.

E) All of the choices are correct.

**In an oligopoly market, A) a firm must lower price in order to sell more output. B) each firm faces a demand curve that depends on how the firm's rivals behave. C) a few firms account for a large portion of industry sales. D) both "firm must lower price in order to sell more output" and "each firm faces a demand curve that depends on how the firm's rivals behave". E) All of the choices are correct.

D) a strategy that leads to the best outcome no matter what a rival does.

**In game theory, a dominant strategy is A) a strategy used by a large firm to compete against smaller firms. B) a strategy followed by the price leader. C) a strategy involving a high risk but also a high return. D) a strategy that leads to the best outcome no matter what a rival does. E) None of the choices are correct.

D) A strategy that leads to the best outcome for a firm no matter what strategy the other chooses.

**In game theory, what is a dominant strategy? A) A strategy that leads to the best possible outcome for both firms. B) Any strategy that leads to a Nash equilibrium. C) A strategy that yields a minimax outcome. D) A strategy that leads to the best outcome for a firm no matter what strategy the other chooses. E) None of the choices are correct.

A) marginal revenue is equal in the two markets

**In order to maximize profit, a firm that sells its output in two markets will allocate total output between the two markets so that: A) marginal revenue is equal in the two markets B) marginal revenue for the firm is equal to the sum of the marginal revenues C) marginal revenue for the firm is equal to the sum of the marginal costs D) both "marginal revenue is equal in the two markets" and "marginal revenue for the firm is equal to the sum of the marginal revenues" E) None of the choices are correct

A) firms consider the actions of other firms when making price and output decisions.

**Interdependence occurs when A) firms consider the actions of other firms when making price and output decisions. B) all firms in an industry are affected by the same general economic conditions, like consumer incomes and the unemployment rate. C) firms cooperate to increase profit. D) both "firms consider the actions of other firms when making price and output decisions" and "all firms in an industry are affected by the same general economic conditions, like consumer incomes and the unemployment rate". E) All of the choices are correct.

A) there are few firms in the market.

**Oligopolists face interdependent profits because A) there are few firms in the market. B) the product is differentiated. C) industry sales are large. D) All of the choices are correct.

A) to discourage the entry of new firms.

**One reason a firm or firms might charge a price lower than its profit-maximizing price is A) to discourage the entry of new firms. B) to follow a tit-for-tat strategy. C) to erect multiproduct barriers to entry. D) both "to discourage the entry of new firms" and "to erect multiproduct barriers to entry". E) All of the choices are correct.

B) 2

**Refer to the following figure showing the reaction functions of oligopoly firms A and B. If firm A anticipates that firm B will run 3 ads, then firm A should run _____ ads in order to maximize its own profit. A) 1 B) 2 C) 4 D) 5 E) 6.5

C) the price A should charge to maximize A's profits given each possible price that B might charge.

**Refer to the following figure. Two firms, A and B, produce similar, but not identical, products. BRA and BRB are, respectively, the reaction functions for firms A and B, which compete primarily by price. A's best-response curve shows A) all the Nash equilibrium prices that firm A can charge. B) how firm B should react to any price set by A. C) the price A should charge to maximize A's profits given each possible price that B might charge. D) the price A should charge to maximize joint profits. E) both "the price A should charge to maximize A's profits given each possible price that B might charge" and "the price A should charge to maximize joint profits".

E) 75 in market 1,150 in 2

**The following graph shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost. How should the firm allocate sales between the two markets? A) 150 in each market B) 100 in market 1,175 in 2 C) 150 in market 1,300 in 2 D) 112.5 in each market E) 75 in market 1,150 in 2

B) 225 units

**The following graph shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost. What total output should the firm produce? A) 275 units B) 225 units C) 175 units D) 350 units E) 100 units

E) both "the firm must possess market power" and "it must be difficult for consumers in one market to sell to consumers in the other market"

**To successfully practice price discrimination A) the firm must be a pure monopoly B) the firm must possess market power C) it must be difficult for consumers in one market to sell to consumers in the other market D) both "the firm must be a pure monopoly" and "it must be difficult for consumers in one market to sell to consumers in the other market" E) both "the firm must possess market power" and "it must be difficult for consumers in one market to sell to consumers in the other market"

D) interdependence of profits

**What is the most important characteristic of oligopoly? A) firms have market power B) product differentiation C) low barriers to entry D) interdependence of profits E) None of the choices are correct

D) when the time comes to carry out the threat or promise, fulfilling the threat or promise is in the best interest of the firm making the threat or promise.

A conditional strategic move, such as a threat or promise, can be credible only if A) rivals believe the manager making the threat or promise can be trusted to follow through on any commitment, threat, or promise that he or she makes. B) the strategic move harms rivals. C) it can increase each firm's payoff. D) when the time comes to carry out the threat or promise, fulfilling the threat or promise is in the best interest of the firm making the threat or promise. E) None of the choices are correct.

B) a way of becoming the first-mover in sequential decision situation.

A credible commitment is A) always irreversible. B) a way of becoming the first-mover in sequential decision situation. C) an unconditional strategic move. D) both "always irreversible" and "an unconditional strategic move". E) All of the choices are correct.

C) greater than the elasticity of demand for other customers.

A drugstore offers a discount on prescriptions to senior citizens. This suggests that the absolute value of elasticity of demand for senior citizens is A) greater than one. B) less than one. C) greater than the elasticity of demand for other customers. D) less than the elasticity of demand for other customers.

A) should determine jointly the levels of output for the two goods.

A firm is producing two goods (X and Y) that are related in consumption. The demand function for X is: Qd = 120 − 4PX − 10PY. In order to maximize profit, the firm A) should determine jointly the levels of output for the two goods. B) should treat the price of Y as given when determining the optimal production of good X. C) should choose the levels of output for goods X and Y at which total marginal revenue equals total marginal cost. D) both "should determine jointly the levels of output for the two goods" and "should treat the price of Y as given when determining the optimal production of good X". E) both "should determine jointly the levels of output for the two goods" and "should choose the levels of output for goods X and Y at which total marginal revenue equals total marginal cost".

A) cars and gasoline

A firm is producing two goods (X and Y) that are related in consumption. The demand function for X is: Qd = 120 − 4PX − 10PY. Which of the following pairs of goods might the firm be producing? A) cars and gasoline B) cola and caffeine-free coke C) newspapers and tennis balls D) bran cereal and sugar-frosted corn flakes E) both "cola and caffeine-free coke" and "bran cereal and sugar-frosted corn flakes"

B) substitutes.

A firm sells two goods (X and Y) that are related in consumption. The estimated demand and cost conditions are: P X = 20 − 0.1QX − 0.05QY PY = 70 − 0.3QY − 0.1QX MCX = 1 + 0.1QX MCY = 2 + 0.25QY Goods X and Y are A) is maximizing profit. B) substitutes. C) independent. D) normal. E) inferior.

D)QX = 51, QY = 74

A firm sells two goods (X and Y) that are related in consumption. The estimated demand and cost conditions are: P X = 20 − 0.1QX − 0.05QY PY = 70 − 0.3QY − 0.1QX MCX = 1 + 0.1QX MCY = 2 + 0.25QY What are the profit-maximizing levels of output for the two goods? A) QX = 20, QY = 10 B) QX = 41, QY = 24 C) independent. D) QX = 51, QY = 74 E) None of the choices are correct

D)PX = $11.20, PY = $42.70

A firm sells two goods (X and Y) that are related in consumption. The estimated demand and cost conditions are: P X = 20 − 0.1QX − 0.05QY PY = 70 − 0.3QY − 0.1QX MCX = 1 + 0.1QX MCY = 2 + 0.25QY What are the profit-maximizing prices for the two goods? A) PX = $25.60, PY = $20.50 B) PX = $30, PY = $35 C) PX = $50, PY = $45 D) PX = $11.20, PY = $42.70

B) substitutes.

A firm sells two goods (X and Y) that are related in consumption. The estimated inverse demand and cost functions are: PX = 105 − 0.5QX − 0.75QY; PY = 120 − QY − 0.5QX; MCX = 10 + 0.25QX; MCY = 16 + 0.5QX. Good X and Y are A) complements. B) substitutes. C) independent. D) normal. E) inferior.

C)QX= 58, QY = 30

A firm sells two goods (X and Y) that are related in consumption. The estimated inverse demand and cost functions are: PX = 105 − 0.5QX − 0.75QY; PY = 120 − QY − 0.5QX; MCX = 10 + 0.25QX; MCY = 16 + 0.5QX. What are the profit-maximizing levels of output for the two goods? A) QX= 6, QY = 3 B) QX=40, QY = 40 C) QX= 58, QY = 30 D) QX= 240, QY = 270 E) None of the choices are correct

B)PX= $53. 50,PY = $61

A firm sells two goods (X and Y) that are related in consumption. The estimated inverse demand and cost functions are: PX = 105 − 0.5QX − 0.75QY; PY = 120 − QY − 0.5QX; MCX = 10 + 0.25QX; MCY = 16 + 0.5QX. What are the profit-maximizing prices for the two goods? A) PX= $40, PY = $32.50 B) PX= $53. 50,PY = $61 C) PX= $80, PY = $55 D) PX= $112.50, PY = $87.75 E) None of the choices are correct

A) exists when a firm can earn greater profit by reacting to earlier decisions made by rivals.

A second-mover advantage A) exists when a firm can earn greater profit by reacting to earlier decisions made by rivals. B) always arises when there is not a first-mover advantage in a sequential decision. C) arises because rivals have imperfect information about payoffs. D) None of the choices are correct.

C) $35,000

Black Diamond Tennis & Golf Club offers golf and tennis memberships to the residents of Black Diamond, Ohio, in which there are two types of families: golf-oriented families and tennis-oriented families. There are 100 golf-oriented families and 100 tennis-oriented families in Black Diamond. Forecasted demand prices for golf and tennis memberships by family type are given in the table. There is no way to identify family types for pricing purposes, and all costs are fixed so that maximizing total revenue is equivalent to maximizing profit. How much total revenue can be generated each month under a pricing plan where separate golf and tennis memberships are offered? A) $20,000 B) $25,000 C) $35,000 D) $70,000 E) $95,000

E) Either "Charge $75 for tennis memberships and $200 for golf memberships" or "Charge $150 for tennis memberships and $200 for golf memberships".

Black Diamond Tennis & Golf Club offers golf and tennis memberships to the residents of Black Diamond, Ohio, in which there are two types of families: golf-oriented families and tennis-oriented families. There are 100 golf-oriented families and 100 tennis-oriented families in Black Diamond. Forecasted demand prices for golf and tennis memberships by family type are given in the table. There is no way to identify family types for pricing purposes, and all costs are fixed so that maximizing total revenue is equivalent to maximizing profit. If Black Diamond Tennis & Golf Club plans to offer golf and tennis memberships separately, what prices should be charged for each kind of membership if Black Diamond wishes to maximize profit? A) Charge $75 for tennis memberships and $50 for golf memberships. B) Charge $75 for tennis memberships and $200 for golf memberships. C) Charge $150 for tennis memberships and $200 for golf memberships. D) Charge $150 for tennis memberships and $50 for golf memberships. E) Either "Charge $75 for tennis memberships and $200 for golf memberships" or "Charge $150 for tennis memberships and $200 for golf memberships".

E) both "Demand prices differ across family types for tennis and golf memberships" and "Demand prices are negatively correlated".

Black Diamond Tennis & Golf Club offers golf and tennis memberships to the residents of Black Diamond, Ohio, in which there are two types of families: golf-oriented families and tennis-oriented families. There are 100 golf-oriented families and 100 tennis-oriented families in Black Diamond. Forecasted demand prices for golf and tennis memberships by family type are given in the table. There is no way to identify family types for pricing purposes, and all costs are fixed so that maximizing total revenue is equivalent to maximizing profit. The conditions are right for bundle pricing to increase profit at Black Diamond Tennis & Golf Club because A) demand prices for golf are greater than demand prices for tennis. B) demand prices differ across family types for tennis and golf memberships. C) demand prices are negatively correlated. D) demand prices are positively correlated. E) both "Demand prices differ across family types for tennis and golf memberships" and "Demand prices are negatively correlated".

B) $200

Black Diamond Tennis & Golf Club offers golf and tennis memberships to the residents of Black Diamond, Ohio, in which there are two types of families: golf-oriented families and tennis-oriented families. There are 100 golf-oriented families and 100 tennis-oriented families in Black Diamond. Forecasted demand prices for golf and tennis memberships by family type are given in the table. There is no way to identify family types for pricing purposes, and all costs are fixed so that maximizing total revenue is equivalent to maximizing profit. What is the optimal price to charge for a bundled tennis and golf and tennis membership? A) $150 B) $200 C) $225 D) $250 E) $275

D) all of the firms in the market decide not to cheat.

Cooperation is achieved in an oligopoly market when A) most of the firms in the market decide not to cheat. B) some of the firms in the market decide not to cheat. C) at least one of the firms in the market decide not to cheat. D) all of the firms in the market decide not to cheat.

A) irreversible, unconditional

Firms make credible commitments by taking _________________ , _______________ actions. A) irreversible, unconditional B) reversible, uncontrollable C) reversible, believable D) costly, but believable E) costly, reversible

A) is maximizing profit.

Gus has 20 acres of land in cultivation and is currently planting both soybeans and peanuts. The last acre planted in soybeans yielded 20 bushels, and the last bushel of soybeans added $0.50 to Gus's total revenue. The last acre planted in peanuts yielded 10 bushels and the last bushel of peanuts added $1 to Gus's total revenue. Gus A) is maximizing profit. B) should devote more acres to soybeans and fewer to peanuts. C) should devote more acres to peanuts and fewer to soybeans. D) should devote 10 acres to each crop.

A) all firms expect the other firms to cheat.

In a one-time prisoners' dilemma decision, A) all firms expect the other firms to cheat. B) cheating is usually not a value-maximizing decision. C) cheating is less likely when the discount rate is low. D) cheating is less likely when the discount rate is high.

C) deciding to cheat is a value-maximizing decision.

In a repeated decision for which the present value of the benefits of cheating is greater than the present value of the costs of cheating, A) deciding not to cheat is a value-maximizing decision. B) deciding to cooperate is a value-maximizing decision. C) deciding to cheat is a value-maximizing decision. D) both "deciding not to cheat is a value-maximizing decision" and "deciding to cooperate is a value-maximizing decision".

A) is possible.

In every prisoners' dilemma situation, cooperation A) is possible. B) reduces the payoff to at least one of the firms. C) reduces the payoff to all players. D) is likely. E) both "reduces the payoff to all players" and "is likely".

D) marginal revenue equals marginal cost for each good simultaneously.

In order to maximize profit, a firm producing two goods that are related in consumption should choose the levels of output at which A) total marginal revenue equals total marginal cost. B) total marginal revenue equals the marginal cost of each good. C) the marginal revenue of each good equals total marginal cost. D) marginal revenue equals marginal cost for each good simultaneously.

D) marginal revenue equals marginal cost for each good.

In order to maximize profit, a firm that produces two goods that are related in consumption should chose the levels of output at which A) total marginal revenue equals total marginal cost. B) total marginal revenue equals the marginal cost of each good. C) the marginal revenue of each good equals total marginal cost. D) marginal revenue equals marginal cost for each good. E) None of the choices are correct.

E) None of the choices are correct.

In simultaneous decision-making situations, common knowledge means that A) at least one of the decision makers knows what is going to happen. B) all of the decision makers know what the outcome of the decision will be. C) even people not involved in making the decision will be able predict the outcome. D) the managers of the firms failed to keep all of the information about their decision plans secret. E) None of the choices are correct.

D) None of the choices are correct.

Price leadership A) is rather uncommon today. B) is a pricing arrangement in which one firm in an oligopoly agrees to act as a cartel manager and set a price that will maximize the profits of all the firms in the oligopoly market. C) would not be useful to a dominant firm if it could eliminate all its rivals through a price war. D) None of the choices are correct.

B) a retaliatory price cut.

Punishment for cheating on pricing agreements usually takes the form of A) a retaliatory advertising campaign. B) a retaliatory price cut. C) a legal suit. D) a monetary fine.

D) substitutes.

Refer to the following P X = 666 − 0.5QX − 2QY P y = 484.5 − 1.5QY − 0.25QX MCX = 20 + 2QX MCY = 4 + QY Goods X and Y are A) normal. B) inferior. C) independent. D) substitutes. E) complements.

C) QY = 142, QY = 110

Refer to the following P X = 666 − 0.5QX − 2QY P y = 484.5 − 1.5QY − 0.25QX MCX = 20 + 2QX MCY = 4 + QY What are the profit-maximizing levels of output for the two goods? A) QY = 30, QY = 34 B) QY = 63, QY = 66 C) QY = 142, QY = 110 D) QY = 191, QY = 163

C) $12

Refer to the following figure. Two firms, A and B, produce similar, but not identical, products. BRA and BRB are, respectively, the reaction functions for firms A and B, which compete primarily by price. If firm A is expected to charge a price of $6, B should charge a price of $______ to maximize B's profit. A) $4 B) $7 C) $12 D) $16

C) $10

Refer to the following figure. Two firms, A and B, produce similar, but not identical, products. BRA and BRB are, respectively, the reaction functions for firms A and B, which compete primarily by price. If firm A predicts B will set a price of $12, then firm A should charge a price of $______ to maximize A's profit. A) $6 B) $8 C) $10 D) $12

A) is a form of cooperation that occurs without explicit communication.

Tacit collusion A) is a form of cooperation that occurs without explicit communication. B) is illegal per se in the U.S. C) involves strict adherence to quotas. D) seems to rare, especially among manufacturers of consumer durables.

C) agreeing on price without explicit communication among firms.

Tacit collusion in a market represents a method for A) collusion to discourage entry into the market. B) a price-fixing agreement when such agreements are legal. C) agreeing on price without explicit communication among firms. D) cheating on a cartel price. E) None of the choices are correct.

A) 55

The Hilton Hotel chain serves both business and vacation travelers. Above, DBusiness and MRBusiness represent the demand and marginal revenue for business travelers, while DVacation and MRVacation are the demand and marginal revenue for vacation travelers. What is the profit-maximizing number of BUSINESS travelers to serve? A) 55 B) 100 C) 150 D) 200 E) 300

E) $70

The Hilton Hotel chain serves both business and vacation travelers. Above, DBusiness and MRBusiness represent the demand and marginal revenue for business travelers, while DVacation and MRVacation are the demand and marginal revenue for vacation travelers. What price should the Hilton charge VACATION travelers? A) $20 B) $30 C) $50 D) $60 E) $70

C) $100

The Hilton Hotel chain serves both business and vacation travelers. DBusiness and MRBusiness represent the demand and marginal revenue for business travelers, while DVacation and MRVacation are the demand and marginal revenue for vacation travelers. If marginal cost decreases to the point that total marginal revenue ( MRT is not shown in the figure) for Hilton at the profit-maximizing level of total output is $40, what price should the Hilton charge BUSINESS travelers? A) $60 B) $80 C) $100 D) $120 E) $140

C) total revenue will increase $1.

The WildTimes Bar offers female patrons a lower price for a drink than male patrons. The bar will maximize profit by selling a total of 200 drinks per night. At the current prices, male customers buy 150 drinks, while female customers buy 50 drinks. The marginal revenue from the last drink sold to a male customer is $1.50, while the marginal revenue from the last drink sold to a female customer is $0.50. If the bar sells 151 drinks to male customers and 49 drinks to female customers instead, then A) total revenue will decrease $0.50. B) profit will decrease $0.50. C) total revenue will increase $1. D) total revenue will increase $1.50. E) both "total revenue will decrease $0.50" and "profit will decrease $0.50".

A) should lower the price for male customers and raise the price for female customers.

The WildTimes Bar offers female patrons a lower price for a drink than male patrons. The bar will maximize profit by selling a total of 200 drinks per night. At the current prices, male customers buy 150 drinks, while female customers buy 50 drinks. The marginal revenue from the last drink sold to a male customer is $1.50, while the marginal revenue from the last drink sold to a female customer is $0.50. The bar A) should lower the price for male customers and raise the price for female customers. B) should lower the price for female customers and raise the price for male customers. C) should charge the same price regardless of gender. D) is maximizing profit; should keep selling 150 drinks to male customer and 50 drinks to female customers.

B) price is lower in the higher elasticity market

The following graph shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost. What rule do you follow for price determination for a firm that practices price discrimination? A) elasticity and price are not related B) price is lower in the higher elasticity market C) price is higher in the higher elasticity market D) profit is maximized when both prices and elasticities are equal E) None of the choices are correct

D) both "tit-for-tat" and "grim"

Which of the following are trigger strategies? A) eye-for-an-eye B) tit-for-tat C) grim D) both "tit-for-tat" and "grim" E) All of the choices are correct

C) tit-for-tat

Which strategy for punishing cheating has consistently been the winning strategy in tournaments pitting decision strategies against one another? A) grim B) eye-for-an-eye C) tit-for-tat D) Nash strategy