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Question 3. There are two individuals '1' = 1,2. Individual i's action is denoted s; and can he an},r real number. The utility functions of

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Question 3. There are two individuals '1' = 1,2. Individual i's action is denoted s; and can he an},r real number. The utility functions of individual 1 and 2 are: _ 2 \"11:31:32) 331 23132 31 2 1121:3132}: 32 + 28132 2"32 So here, the action of individual 2 has a negative impact on the utilityr of individual 1 and the action of individual 1 has a positive effect on the utility of individual 2. 1. Find the best response functions of individual 1 and 2. 2. Find the Nash equilibrium levels of s] and 32

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