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(2) Consider the following Minimal Effort Game. There are two players. Each can choose to exert high effort or low effort (H or L). If
(2) Consider the following Minimal Effort Game. There are two players. Each can choose to exert high effort or low effort (H or L). If both exert high effort, then each earns a benefit of 50 and incurs a cost of 5k (assume 0 > k > 0). If both exert low Effort, then each earns a benefit of 0 and incurs a cost of k. Finally, if one exerts high effort and the other exerts low effort, each gets a benefit of 0, but the high effort player incurs a cost of 5k while the low effort player incurs a cost of k. (a) Depict this 2 player 2x2 normal-form game in a matrix. (b) Solve for the Nash Equilibrium
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