Two suspected drug dealers are stopped by the highway patrol for speeding. the officer searches the car and finds a small bag of marijuana and arrests the two. during the interrogation, each is separately offered the following: "if you confess to dealing drugs and testify against your partner, you will be given immunity and released while your partner will get 10 years in prison. if you both confess, you will each get 5 years." if neither confesses, there is no evidence of drug dealing, and the most they could get is one year each for possession of marijuana. if each suspected drug dealer follows a dominant strategy, what should he/she do?

If each suspected drug dealer follows a dominant strategy, he/she should - a. confess regardless of the partner's decision

Explanation:

In game theory, one player would be displaying strategic dominance if he or she chooses a dominant strategy, which promises a better outcome for this player regardless of the strategy chosen by the player he or she is playing against.

Here, each suspected drug dealer will have a better outcome if he/she confesses and testifies against his/her partner, because in result he/she gets the best possible outcome - immunity.

marginal cost is a microeconomic measure that us to evaluate the extent to which the level of production of a good is sustainable in accounting, that is, to how many quantities the company plans to profit from the production of the good.

the concept of marginal cost is simple, it means the cost of producing one more item. for example, in the case of pies, the marginal cost is the cost of producing one more pie than those that have already been produced.

it is important to understand that productive activity influences marginal cost. the marginal cost of some goods can be very high, while others may be insignificant. for example, the marginal cost of producing an extra plane is very high. already the marginal cost of a water company to provide 1l more water is derisory.

in the case of pies, the cost involves the inputs, the labor and the fixed cost, which involves the fixed space of the bakery. the level of production initially has the marginal cost decreasing because there is space and manpower available. however, to produce more you have to hire more workers and buy more inputs. if physical space is limited, workers will conflict with places, inputs and their productivity will decrease, meaning there is an optimum point of production for each level of space and manpower. from this point on, the productivity of the workers will be getting smaller because of lack of space, so that the marginal cost of producing one more pie will be increasing. so, although you have not posted the chart, but if you have the answer, you can see that my explanation goes according to the marginal cost curve that will increase from the 4th pie, answer (c).