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1. Two roommates, A and B are planning to buy a TV for their apartment Denote the decision to purchase the TV by G E (0,1) where G = 0 means the TV is not purchased and G = 1 means the TV is purchased. Roommates A and B are willing to pay $80 individually for the TV. This then represents their values which we denote as follows: v^ (1) = $80, VB (1) = $80, VA (0 ) = UB (0) = $0. The cost of the TV that the roommates wish to purchase is $100. Both roommates have exactly the same viewing preferences and will watch the same TV shows together once the TV is bought. Moreover, once the TV has been bought, it is not possible to exclude anyone from watching TV when it is on. a) Is the consumption of TV in this household non-rival? Explain why. b) Is the consumption of TV in this household non-excludable? Explain why. c) Describe the efficient outcome for this household with respect to purchase of the TV. A and B are considering placing an order for the TV online. They cannot observe each other's decision and hence consider this decision simultaneously without communicating with each other. d) Draw the payoff matrix that represents the payoffs to this simultaneous game between A and B. e) What is the efficient outcome of this game? () What is the Nash Equilibrium of the game