The Game in Strategic Form Below Describes the Situation Between

question 2

Multiple Choice

The game in strategic form below describes the situation between Northland and Southland. Each must decide whether to reduce carbon emissions. The cells describe national welfare in billion dollars. Identify the Nash equilibrium or equilibria in pure strategies. $\begin{array}{c} \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad\text { Southland }\\\text { Northland }\begin{array}{|l|c|c|}\hline& \text { Maintain emissions } & \text { Reduce emissions } \\\hline\text { Maintain emissions } &-2,-2 & 2,-1 \\\hline \text { Reduce emissions } &-1,2 & 1,1 \\\hline\end{array}\end{array}$

• A) Northland: Maintain. Southland: Maintain.
• B) Northland: Maintain. Southland: Reduce.
• C) Northland: Reduce. Southland: Maintain.
• D) a and c.
• E) b and c.

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