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There are two rms whose factories sit alongside a lake. It costs each rm $2,500.00 to install lters to avoid polluting the lake. Because both

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There are two rms whose factories sit alongside a lake. It costs each rm $2,500.00 to install lters to avoid polluting the lake. Because both rms utilize the lake's water to produce goods, a polluted lake hurts their production process and increases their costs. Assume that the cost to each rm of a polluted lake is $1,200.00 times the number of polluting rms. Fill in the cost matrix based on the above information. Note: Include negative signs because this problem refers to costs. Firm 2 Pollute Use Filter Pollute , , Firm 1 Use Filter , . Part 2 (0.4 point) 0 See Hint Which of the fol lowing are true about the equilibrium in a oneshot game? Choose one or more: A. The equilibrium is not Pareto optimal. B. Only rm 1 pollutes. C. Only rm 2 pollutes. D. Both rms pollute. E. Neither rm pollutes

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