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2. (20 points) Exxon and Shell own property on a tract of land that has proven oil reserves under it. Each rm has the right to drill a well and extract the oil, but the value of the oil it extracts depends not only on the rate at which it pumps it out but also the rival's extraction rate. The matrix below presents the strategy options and the values of extracted oil to each company. Shell's Extraction Rate Medium ' ' Low Enron's Extraction Med1um Rate High (a) What combination of strategies chosen by Exxon and Shell maximizes the total value of extracted oil? Cb) Does the combination in part (a) represent a Nash equilibrium? Explain! (c) What is the Nash equilibrium of this game? Show how you found it. (d) If Exxon wanted to buy Shell's mineral rights i.e., acquire Shell's ability to drill and extract oil from this tract how much would Exxon have to pay