Two athletes of equal ability are competing for a prize $10,000. Each is deciding whether to take a dangerous performance-enhancing drug. If one athlete takes the drug and the other does not, the one takes the drug wins the prize. If both or neither take the drug, they tie and split the prize. Taking the drug imposes health risks that are equivalent to a loss of X dollars.

a.) Draw a 2 x2 (two by two) payoff matrix describing the decisions the athletes face.

b.) For what X is taking the drug the Nash equilibrium?

x.) does making the drug safer (that is, lowering X) makes the athletes better or worse off? Explain?