Find why cooperators will all pay the cost of vigilance


Please explain how to solve the following problem. Consider a population with the following givens:

1) 75% cooperators and 25% defectors, 2) a 8 unit payoff goes to cooperators who interact with another cooperator, 3) a zero unit payoff goes to a cooperator who interacts with a defector, 4) the cost of knowing which is which is 2.

If the population balance falls below 75%

A) it will no longer make sense for cooperators to pay the price of vigilance.
B) defectors will have a higher payoff.
C) cooperators will all pay the cost of vigilance.
D) less than 75% of the cooperators will pay the cost of vigilance.

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Microeconomics: Find why cooperators will all pay the cost of vigilance
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