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(a) Given the above information, derive each farmer's profit function. (b) Use your answer to (a) to derive each farmer's best response function. (c) Is
(a) Given the above information, derive each farmer's profit function. (b) Use your answer to (a) to derive each farmer's best response function. (c) Is this a game of strategic complements or strategic substitutes? (d) Use the process of IEDS to determine the equilibrium number of goats that the farmers will graze. (e) Now suppose that each farmer did not act independently but cooperatively chose the number of goats that each of them could graze. How many goats will each graze on the commons? Is this quantity of goats sustainable as an IEDS equilibrium? Explain clearly
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