Calculate the number of cows grazed by each cattle herder in the Nash equilibrium to this game. [5 marks]
How much profit does each cattle herder earn? [2 marks]
Is this arrangement Pareto Optimal (i.e., what would arise if the two
firms collude)? Show (mathematically) why/why not. (Pareto optimal means that you cannot make one player better off without making the other player worse off) [3 marks]
Imagine that you work for a finance industry-based organization. Your organization is looking to submit its database design documentation to an...