1. Question [Strictly dominant strategies] There are I rms in an industry. Each can try to convince Congress to give the industry a subsidy. Let hi; denote the number of hours of effort put in by rm i, and let calm) = I{lg-)2, where wt: is a positive constant1 be the cost of this effort to rm 1'. 'When the effort levels of the rms are (In, . . . , hf), the value of the subsidy that gets approved is orEihl; | 5(Hihi), where or and )3 are constants. Consider a game in which the rms decide simultaneously and independently how many hours they will each devote to this effort. Show that each rm has a strictly dominant strategy if and only if ,8 = D. What is rm is strictly dominant strategy when this is so