Total number of $1 coins Temperature in apartment Total benefit to Peter inserted in meter (degrees Celsius) (willingness to pay in dollars) 0 10 0 1 15 3 2 19 5 3 21 5.50 4 23 5 a. Draw a properly labelled diagram showing the marginal benefit to Peter of each dollar spent on heating. How warm will he choose to have his apartment? b. Jess moves in with Peter. The benefits Jess gets from heating are shown in the Table below: Total number of $1 coins Temperature in apartment Total benefit to Jess inserted in meter (degrees Celsius) (willingness to pay in dollars) 0 10 0 1 15 3 2 19 5 3 21 5.75 4 23 6.50 Now that Jess is benefitting from heating, what is the combined marginal benefit (benefit to Jess plus benefit to Peter) from heating? Draw a line showing the combined marginal benefit in your diagram from part a. c. When Jess and Peter live together, what is the Pareto efficient temperature to have the apartment at? Explain how you worked out your answer. d. Jess and Peter take turns feeding the meter. Each evening, they have a choice: put $1 into the meter, or put $2 into the meter. There are four possible outcomes: . They each put $1 into the meter They each put $2 into the meter . Jess puts in $1, Peter puts in $2 . Jess puts in $2, Peter puts in $1 Draw a pay-off matrix showing each person's payoff (total benefit from heating - coins inserted into the meter) in each of the four possible situations. What are the possible Nash equilibrium outcomes to this game? Is efficiency achieved? e. What are some possible things Jess and Peter could do to achieve the efficient outcome