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He review question please help me solve with detailed explanation Mail - Maher, Isab.. Enterprise Bank a... MyUHDS | Univer... Netflix osu transportation Microsoft 9.

He review question please help me solve with detailed explanation

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Mail - Maher, Isab.. Enterprise Bank a... MyUHDS | Univer... Netflix osu transportation Microsoft 9. (8 points) Consider the following payoffs from two countries (the U.S. and Canada) negotiating over reducing an air pollutant that crosses the boundaries of the two countries. Each has two strategies available to it: reduce the pollutant or not. The costs of reducing the pollutant are $7 million for the U.S. and $12 million for Canada. If a country does not reduce the pollutant, its costs are $0. The benefits of reducing the pollutant are $20 million if both countries reduce the pollutant, $10 million if only one country reduces the pollutant, and $0 if no country reduces. As was the case in the international environmental agreements game studied in class, each country. receives the benefits. A. Develop a payoff matrix for this one-shot game. As in class, the payoff for each country (in millions) should be given in the table as (Payoff for U.S., Payoff for Canada). The payoff matrix should be of the following format: Canada Don't reduce Reduce pollutant pollutant Don't reduce pollutant U.S. Reduce pollutant B. Find the Nash equilibrium of this one-shot game. Be sure to identify any dominant strategy for either country. C. Is this game an environmental prisoner's dilemma? Briefly explain. D. Consider the payoffs to Canada when the U.S. reduces the pollutant and Canada doesn't reduce. Explain why Canada might receive a positive payoff when the U.S. reduces the pollutant but Canada doesn't do anything

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