Question

What is the amount paid at the time of purchase for goods purchased from Rajesh for Rs.1,00,000 at terms 10% trade discount and 5% cash discount, if 3/4th of the total amount was paid?

Options:
A) Rs. 75,000
B) Rs. 70,000
C) Rs. 80,000
D) Rs. 85,000

Answer 1

In the context of the prisoner's dilemma between Mary and Raj regarding their corn production, the ideal decision for each depends on their trust in the other. If Raj is sure Mary will cooperate, he should also cooperate; if Mary suspects Raj will cheat, she should act independently. The prisoner's dilemma illustrates potential suboptimal outcomes due to mistrust and self-interest. The best choice for him would be option B,

Step-by-step explanation:

Based on the scenario provided for Mary and Raj, who are the sole suppliers of organically grown corn to a local grocery store, we have a classic illustration of the prisoner's dilemma in game theory. If Raj is confident that Mary will to Cooperate and Lower Output, for both to earn $150. However, if Mary suspects that Raj will cheat, she should choose to work independently (option A) to safeguard against the risk of earning nothing if Raj decides to continue full production while she reduces hers.

The prisoner's dilemma result in this situation indicates that while the preferred outcome is mutual cooperation, there is a temptation for individuals to act in their self-interest, which can lead to suboptimal outcomes for both parties involved. Despite the best choice being to ensure cooperation, without enforcement or trust, both parties may end up choosing to work independently due to the fear of being taken advantage of by the other.