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This is about game theory, please give a full explanation! QUESTION 19 Consider a standard Problem of the Commons. N (N > 1) ranchers use

This is about game theory, please give a full explanation!

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QUESTION 19 Consider a standard Problem of the Commons. N (N > 1) ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The benet of raising a cow for a rancher is a - [)6 per cow, where C is the total quantity of cows using the grassland. The marginal cost of raising a cow is C. Hence, the net benet of raising cows for any rancher Ll = 1,2,..., N is (a - bC)g ,- - cg i, where g,- is the quantity of cows raised by the rancher. In this environment, The socially optimal quantity of cows using the grassland is larger than the total quantity of cows in thethe Nash Equilibrium O The socially optimal quantity of cows using the grassland is smaller than the total quantity of cows in the Nash Equilibrium The socially optimal quantity of cows using the grassland is the same as the total quantity of cows in the Nash Equilibrium The socially optimal quantity of cows using the grassland is sometimes larger and sometimes smaller than the total quantity of cows in the Nash Equilibrium QUESTION 20 Consider a standard Problem of the Commons. N (N > 1) ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The benet of raisin a cow for a rancher is a - bC per cow, where C is the total quantity of cows using the grassland. The marginal cost of raising a cow is C. Hence, the net benet of raising cows for any rancher Li = 1,2,..., N is (a bC)g ,- - cg f, where g, is the quantity of cows raised by the rancher. In a Nash Equilibrium, O The total quantity of cows increases when the number of ranchers increases The total quantity of cows decreases when the number of ranchers increases The total quantity of cows does not change when the number of ranchers increases The total quantity of cows first decreases, but then increases when the number of ranchers increases

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