Assertion (A): A mechanism is incentive-compatible if truthful revelation is a dominant strategy for all agents. Reason (R): Agents maximize their expected payoff by misreporting their private information.

Given below are two statements: Assertion (A): The 'Tit-for-Tat' strategy in repeated game theory is associated with Robert Axelrod. Reason (R): Axelrod demonstrated through computer tournaments that Tit-for-Tat — cooperate first, then mirror the opponent's last move — achieves the highest average score in iterated Prisoner's Dilemma games. Choose the correct answer:

When all firms have a dominant strategy and each firm chooses its dominant strategy, then it is a state of: