Can anybody answer this?

Question 2 The Bureau of Land Management (BLM) is considering leasing land for oil drilling to DBD, Inc. Extracting the oil would yield a $10 million profit for DBD After drilling, DBD can choose to plug the well properly and reclaim (clean up) the land, but this would cost $2 million. If DBD chooses not to reclaim the land, the BLM will have to take over the responsibility at a cost of $3 million. (DBD is a small corporation that will go bankrupt if sued for damages.) The BLM is considering charging DBD a refundable bond in the amount of $3 million to cover the costs of reclamation should DBD not follow through. Assume the price of the lease is $5 million Answer the following questions: a. Explain why this situation could be considered a principal-agent problem. Who is the principal? Who is the agent? Draw the extensive form of this principal-agent problem and use backward induction to solve for the Nash equilibrium. b. Question 2 The Bureau of Land Management (BLM) is considering leasing land for oil drilling to DBD, Inc. Extracting the oil would yield a $10 million profit for DBD After drilling, DBD can choose to plug the well properly and reclaim (clean up) the land, but this would cost $2 million. If DBD chooses not to reclaim the land, the BLM will have to take over the responsibility at a cost of $3 million. (DBD is a small corporation that will go bankrupt if sued for damages.) The BLM is considering charging DBD a refundable bond in the amount of $3 million to cover the costs of reclamation should DBD not follow through. Assume the price of the lease is $5 million Answer the following questions: a. Explain why this situation could be considered a principal-agent problem. Who is the principal? Who is the agent? Draw the extensive form of this principal-agent problem and use backward induction to solve for the Nash equilibrium. b