Question 15 Not yet answered Marked out of 2.00 P Flag question Suppose, there are two players in a game of continuous a

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Question 15 Not Yet Answered Marked Out Of 2 00 P Flag Question Suppose There Are Two Players In A Game Of Continuous A 1 (51.34 KiB) Viewed 38 times

Question 15 Not yet answered Marked out of 2.00 P Flag question Suppose, there are two players in a game of continuous actions (similar to the "Tragedy of the Commons" game). They both aim to maximize x. Marginal benefit (MB) functions of the players are as below: Player 1: MB1 = 90 - 3X1 - 2x2 Player 2: MB2 = 90 - 2X1-3X2 The marginal cost (MC) of x for each player is 15. (Hint: each player will maximise their payoff when MB=MC). The best response function for Player 1 is X1 = -X2/ The best response function for Player 2 is X2 = -X1/ In the Nash Equilibrium, each player should select units of x.