Both wisconsin and illinois border lake michigan. the lake is becoming polluted and both states are deciding whether or not to clean it. if wisconsin decides to clean the lake it will cost 1200 and generate social benefits of 1500 – however, wisconsin will receive only 1100 of those social benefits while neighbor illinois will receive the other 400. if illinois cleans the lake, it will cost them 700 and generate social benefits of 900 – however, illinois will receive only 600 of those benefits, wisconsin will receive the remaining 300. if a state does not clean the lake, it experiences a cost of $0. in the absence of any agreement, the outcome of this game will be

Consider two cigarette companies, pm inc. and brown inc. if neither company advertises, the two companies split the market and earn $50 million each. if they both advertise, they again split the market, but profits are lower by $10 million since each company must bear the cost of advertising. yet if one company advertises while the other does not, the one that advertises attracts customers from the other. in this case, the company that advertises earns $60 million while the company that does not advertise earns only $30 million. if these two companies collude and agree upon the best joint strategy, a. neither company will advertise. b. both companies will advertise. c. pm inc. will advertise but brown inc. will not. d. brown inc. will advertise but pm inc. will not.