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midterm question Q5.(20 pt) Suppose there are only 2 farmers who will decide how many goats to have. Let G denote the total number of

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midterm question

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Q5.(20 pt) Suppose there are only 2 farmers who will decide how many goats to have. Let G denote the total number of goats, and g1, ga denote the number of goats picked by farmers: G = 1 + 92. The benefit that a farmer gets per goat is V(G) = 70 -G, as a function of the total number of goats. The cost of buying and taking care of g many goats is c(g) = 109. Note that the benefit and the cost are the same for all farmers. The net benefit a farmer gets from having g goats, as a function of the total number of goats, is g.V(G)-c(g) = 9(70-G]-10g. Suppose that each farmer simultaneously decides on how many goats each will buy. i. Find the pure-strategy Nash equilibrium of this game. if. What are the Nash equilibrium payoff levels for the farmers

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