A factory produces smoke that causes damage of $80 to the laundry of a local resident. The smoke damage can be eliminated in one of two ways: the factory can install a chimney at cost $90 or the resident can purchase an electric dryer, and use this to dry his laundry, at cost $60. Questions: A) Suppose first that it is prohibitively expensive for the factory owner and the resident to negotiate. Fill in the payoffs in the matrix below if the factory has an unlimited right to pollute. What is the non-cooperative solution? Is this outcome efficient? Factory Chimney No Chimney Laundry No Dryer Dryer B) Again, suppose that it is prohibitively expensive for the factory owner and the resident to negotiate. Create a new payoff matrix that shows the payoffs if, when the factory pollutes, it must pay damages. What is the non-cooperative solution? Is this outcome efficient?