5. Suppose that you and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but also want to do as little work as you possible. The decision box and payoffs are as follows: Your Decision Work Shirk You get A grade, You get B grade, Work no fun fun Classmate gets Classmate gets B Classmate's ~ A grade, no fun grade, no fun Decision You get B grade, You get D grade, fun fun Work Classmate gets Classmate gets B grade, fune D grade, fune Assume that having fun is your normal state, but having no fun is as unpleasant as receiving a grade that is two letters lower. a. Write out the decision box that combines the letter grade and the amount of fun you have into a single payoff for each outcome. Answer: b. If neither you nor your classmate knows how much work the other person is doing, what is the likely outcome? Does it matter whether you are likely to work with this person again? Explain your answer." Answer; 7. A case study in the chapter describes a phone conversation between the presidents of American Airlines and Braniff Airways. Let's analyze the game between the two companies. Suppose that each company can charge either a high price for tickets or a low price. If one company charges $100, it earns low profits if the other company charges $100 also, and high profits if the other company charges $200. On the other hand, if the company charges $200, it earns very low profits if the other charges $100, and medium profits if the other company charges $200 also. a. Draw the decision box for this game. b. What is the Nash equilibrium in this game? Explain. c. Is there an outcome that would be better than the Nash equilibrium for both airlines? How could it be achieved? Who would lose company if it were achieved