Can you please explain how the numbers in the playoff table are calculated?

Suppose that there are two farmers, Earl and Pearl, who graze their milk cows on the common pasture of their village. Each farmer can purchase up to two cows, and the more cows that are on the pasture, the less grass there will be per cow, meaning each cow will produce less milk. Suppose that cows cost $500 each and milk sells for $2 per litre. The following table summarizes the production of each cow given the number in the pasture. Number of Litres of Milk Cows Per Cow 2 800 3 600 4 500 What is profit of each farmer in the Nash equilibrium? What would be the efficient number of cows? Answer: The farmers' profits can be summarized the by the following table Pearl One Cow Two Cows E... OneCow some... Two Cows $1,400, $700 $1,000, $1,000 Two cows is a dominant strategy for both farmers, so each farmer will earn $1, 000 in the Nash equilibrium. The efficient number of cows is 2 (total) because this is the number maximises the value of milk produced minus the cost of the cows. (This is an example of what economists call the \"tragedy of the commons", which is when common resources, like the pasture in this case, are overused because individuals do not take into account that their use of the resource reduces its usefulness to others. In this case, each farmer did not take into account that adding an additional cow to the pasture reduces the milk produced by other farmers' cows. This is a common problem with open-access resources, for example, overfishing in unregulated fisheries and hunting of endangered species.)