Suppose an upstream firm pollutes a river which imposes costs on a downstream firm. The following matrix shows the monthly payoffs to the upstream and downstream firms when the upstream firm installs, and does not install, a filter 21) 22)Installs filter 23)Does not install filter 26)$120 per month 29)$70 per month 24)Upstream 25)S100 per month 28)$100 per month 27)Downstream If the upstream firm has the legal right pollute and bargaining is costless, which of the following statements is correct? a. The socially optimal outcome occurs when the upstream firm installs a filter. b. The downstream firm can induce the upstream firm to install a filter by paying the upstream firm $25 per month. C. The downstream firm will offer the upstream firm $35 to install a filter. d. The upstream firm will install a filter to maximise their own profits.