Question 3.4 Consider the following game: Two firms are situated next to a lake, and it costs each firm $1,500 per period to use filters that avoid polluting the lake. However, each firm must use the lake's water in production, so it is also costly to have a polluted lake. The cost to each firm of dealing with water from a polluted lake is $1,000 times the number of polluting firms. Nessie, Corp. Pollute Don't Pollute Lago, Inc. Pollute -$2.000. -$2.000 -$1.000. -$2.500 Don't Pollute -$2.500, -$1,000 -$1.500. -$1.500 a) Is there a dominant strategy? If yes, explain which one it is, and why. If not, explain why. b) If both companies act simultaneously, what will be the equilibrium? Justify your answer. c) If Nessie, Corp acts first, what is the equilibrium? Explain your