Consider two household product firms, PG and Unilever. At their respective board meetings they can decide whether to Wait or Invest. These decisions, for all practical purposes, are made at the same time. If both Wait, the payoff is 3 each. If both Invest, each gets 4 . If one firm Invests and the other Waits, the investor gets 2 and the firm that Waited gets 5. Which statement is true? a The equilibrium of the game doesn't maximise the total surplus. b Both firms have dominant strategies to Wait
c In the equilibrium one firm Waits and the other Invests d Both firms would like to Invest in the equilibrium of the game e In the equilibrium of the game both firms Wait; this is a prisoners' dilemma