\f2) Evanlyn and Halt are in an ECO101 study group. They need to prepare for their study group meeting and must make their choice at the same time. Suppose they have two choices - Prepare or Don't Prepare. Preparation effort is costly. Denote this effort cost by 'E' The benefit of preparation is a higher grade on the final. If both prepare, they both get an A. If one prepares and the other doesn't, the one who prepares gets a B and the other a C. If neither prepares, they both get a D. 2a) [3 points] Is this a strategic situation? Explain your reasoning. 2b) [7 points] Create a payoff matrix that captures the outcomes of their choices using only the letters A, B.C,D and E. What assumptions would we need on Evanlyn valuations of the different grades (A, B, C, D) and preparation effort (E) for 'Prepare' to be her strictly dominant strategy? Briefly explain your reasoning.3) Consider the game in the table below. Person A left right Person B up 10.0 0.5 down 0,5 10.0 3a) [4 points] Claim: (up, left) is a Nash equilibrium of the game. True, False or Uncertain? Explain your reasoning. 3b) [3 points] Find all the Nash equilibria of the game