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Can someone help me with the answer? 1. Many homeowners in Sweden and elsewhere have problems with Spanish slugs (mordarsniglar). The only way to get

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1. Many homeowners in Sweden and elsewhere have problems with Spanish slugs (\"mordarsniglar\"). The only way to get rid of them is to collect and kill them, which is both timeconsuming and not very pleasant. In addition, slugs move (slowly) between gardens, so if you collect many slugs, you will also reduce the number of slugs in your neighbor's garden. Suppose there are two neighboring home-owners. Home-owner A and B collect and kill a and b slugs each. The benet to homeowner A is 10*a + a*b and the benet to homeowner B is 10*b + a*b. The cost of collecting slugs for home-owner A is 2.5"'a2 and the cost for home-owner B is b2, i.e. home- owner A nds it more painful to kill slugs than home-owner B. (A) Verify that the best response rule for A is to kill a = 2 + 0.2*b slugs and that the best-response for B is to kill b = 5 + O.5*a slugs. (B) Show that it is a Nash equilibrium for A to kill 10/3 2 3.33 slugs and for B to till 20/3 2 6.67 slugs. (C) Suppose they decide to kill the same number of slugs, X, each. What is the value of X that would maximize the sum of the two neighbors' payoff? (D) Do you think the two neighbors would be able to keep an agreement to kill the number of slugs you found in part (C)

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