There are two firms, each having the option of polluting during production or cleaning up its production process such that it doesn't pollute. Of course, polluting is cheaper than not polluting. The payoffs for each of the choice combinations are shown in the decision matrix below. Firm B Pollute Don't Pollute $75,000 $25.000 $75.000 $10,000 $10,000 $25,000 125.000 125.000 What kind of commitment strategy could keep these firms from polluting? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. The environmental protection agency conducts a study on the dangers of pollution. 7 The government recommends that the companies not pollute. 7 The government makes pollution illegal and charges a company a $10,000 fine if it is caught polluting. 7 The companies agree not to pollute 7 The government makes pollution illegal and charges a company a $75,000 fine if it is caught polluting. Fim A Pollute Don't Pollute

There are two firms, each having the option of polluting during production or cleaning up its production process such that it doesn't pollute. Of course, polluting is cheaper than not polluting. The payoffs for each of the choice combinations are shown in the decision matrix below. Firm B Pollute Don't Pollute $75,000 $25.000 $75.000 $10,000 $10,000 $25,000 125.000 125.000 What kind of commitment strategy could keep these firms from polluting? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. The environmental protection agency conducts a study on the dangers of pollution. 7 The government recommends that the companies not pollute. 7 The government makes pollution illegal and charges a company a $10,000 fine if it is caught polluting. 7 The companies agree not to pollute 7 The government makes pollution illegal and charges a company a $75,000 fine if it is caught polluting. Fim A Pollute Don't Pollute

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Two friends, Khalid and Mahmood, are going to a watch a world cup football match. They play a simple game in which they hold out one or two fingers to decide who will pay for the other's ticket. Khalid wins if the fingers held out add up to an even number; Mahmood wins if the fingers held out add up to an odd number. The price of the ticket is 25 OMR. Construct a payoff matrix for the game. Is there a unique Nash equilibrium in this game? Which strategy should a player use to maximize her chances of winning the game?
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Find Pure Strategy Nash equilibirum then use following values for emissions.
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Answer both please otherwise we will give dounvote