You and a classmate are assigned a project on which you will receive a good grade, but you also want to avoid work. In particular here is the situation:

If both of you work hard, you both get an A, which gives each of you 40 units of happiness.

If only one of you works hand, you both get a B, which gives of you 30 units of happiness.

If neither of you works hard, you both get a D, which gives of you 10 units of happiness.

Working hard costs 25 units of happiness.

1. Draw a 2 X 2 decision box for you and your classmate and fill in the payoffs.
2. What is the likely outcome? Explain your answer.
3. Another classmate cares about good grades: He gets 50 units of happiness from a B and 80 units of happiness from an A. If this classmate was your partner (but your preferences were unchanged) how would your answer to part (a) and (b) change?