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please answer all Two neighboring homeowners,i = 1,2, simultaneously choose how many hours lgto spend maintaining a beautiful lawn. The average benefit per hour is

please answer all

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Two neighboring homeowners,i = 1,2, simultaneously choose how many hours lgto spend maintaining a beautiful lawn. The average benefit per hour is 10li+lzi The (opportunity) cost per hour for each is 4. Homeowner i's average benet is increasing in the hours neighborj spends on his own lawn because the appearance of one's property depends in part on the beauty of the surrounding neighborhood. The Nash equilibrium involves ll = and Z2 = On the following graph, use the blue line (circle symbols) tro graph the best response function for homeowner 1, use the green line (triangle symbols) to graph the best response function for homeowner 2, and use the black paint (plus symbol) to plot the Nash equilibrium. (9 10 o 9 8 Best Response for Homeowner 1 7 + 6 Best Response for Homeowner 2 S 5 u ? 4 Nash Equilibrium 3 2 1 0 Suppose the intercept of the average benet per hour, for only homeowner 1, decreases from 10 to a lower number a. That is, suppose the average benefit per hour for homeowner 1 is now: 12 al1+7 Which of the following would occur? C' The best response function for homeowner 1 would shift left. A The best response function for homeowner 1 would shift right. if; The best response function for homeowner 2 would shift left. A The best response function for homeowner 2 would shift right

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