The USA and China are locked in negotiations to cut emissions. The following table represents the pay-offs from cutting emissions and continuing to pollute:

Select one:

a.$1.5mil

b.$1mil

c.$1.8mil

d.$2.4mil

China Pollute Cut Emissions USA Pollute USA = $1mil USA = $2.5mil China = $1.5mil China = $1mil Cut Emissions USA = $0.8mil USA = $2mil China = $2.4mil China = $1.8mil If China plays its dominant strategy, its payoff at the Nash Equilibrium will be