Each year, the lumberjacks choose independently how many acres of trees to cut down; specifically, they choose whether to log intensively (that is, to clear-cut a section of the forest, which hurts the sustainability of the forest if enough people do it) or to log nonintensively (which does not hurt the sustainability of the forest). None of them has the ability to control how much the others log, and each lumberjack cares only about his own profitability and not about the state of the forest. Assume that as long as no more than one lumberjack logs intensively, there are enough trees to regrow the forest. However, if two or more log intensively, the forest will become useless in the future. Of course, logging intensively earns a lumberjack more money and greater profit because he can sell more trees. The forest is an example of because the trees in the forest are Kevin's Profit-Maximizing Response Depending on whether Rajiv and Yakov both choose to log either nonintensively or intensively, fill in Kevin's profit-maximizing response in the following table, given Rajiv and Yakov's actions. Rajiv and Yakov's Actions Log Nonintensively Log Intensively and Which of the following solutions could ensure that the forest is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Develop a program that entices more lumberjacks to move to the area. Convert the forest to private property, and allow the owner to sell logging rights. Outlaw intensive logging.

Janeek and Raj are the only two growers who provide organically grown com to a local grocery store. They know that if they cooperated and produced less com, they could raise the price of the corn. If they work independently, they will each earn $100. If they decide to work together and both lower their output, they can each earn $150. if one person lowers output and the other does not, the person who lowers output will earn $0 and the other person will capture the entire market and will earn $200. Reference the game illustrated below where the first payout in each cell is for Janeek and the second is for Raj. (J.R) Independent Cooperate Independent ($100, $100) ($0, $200) What is the Nash Equilibrium for this game? Ⓒ(Cooperate, Cooperate) (Cooperate, Independent) (Independent, Cooperate) (Independent, Independent) Cooperate ($200, 50) ($150, $150)

Table 3. This table shows a game played between two firms, Firm A and Firm B. In this game each firm must decide how much output (Q) to produce: 5 units or 6 units. The profit for each firm is given in the table as (Profit for Firm A. Profit for Firm B). Firm A Q=5 Q=6 Firm B Q=5 (24, 24) (30, 10) Q=6 (10,30) (19, 19) Refer to Table 3. The dominant strategy For Firm A is to produce Select one: O a. 5 units and the dominant strategy for Firm B is to produce 5 units. b. 5 units and the dominant strategy for Firm B is to produce 6 units. c. 6 units and the dominant strategy for Firm B is to produce 5 units. d. 6 units and the dominant strategy for Firm B is to produce 6 units.

An old lady is looking for help crossing the street. Only one person is needed to help her; if more people help her, this is no better. You and I are the two people in the vicinity who can help; we have to choose simultaneously whether to do so. Each of us will get pleasure worth a 3 from her success (no matter who helps her), But each one who goes to help will bear a cost of 1, this being the value of our time taken up in helping. If neither player helps, the payoff for each player is zero. Set up this game in strategic form.