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Several sawmills are located on the same river. Each firm can choose to dump their waste products in the river (i.e. Pollute) or have them

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Several sawmills are located on the same river. Each firm can choose to dump their waste products in the river (i.e. Pollute) or have them taken care of in an environmentally sound way (i.e. Not Pollute). Suppose that given the current payoffs, each firm's dominant strategy is to pollute. What government strategy could reduce the amount of pollution that occurs? The government can give subsidies for choosing to Not Pollute The government can give fines for choosing to Not Pollute The government can give tax cuts for choosing to Pollute There is nothing the government can do

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