Scenario 13.9 Consider the Following Game

Multiple Choice

Scenario 13.9
Consider the following game:
Two firms are situated next to a lake, and it costs each firm $1,500 per period to use filters that avoid polluting the lake. However, each firm must use the lake's water in production, so it is also costly to have a polluted lake. The cost to each firm of dealing with water from a polluted lake is $1,000 times the number of polluting firms.
-Refer to Scenario 13.9. What kind of game is being played by Lago and Nessie?

A) Battle of the Sexes
B) Prisoners' Dilemma.
C) Beach Location
D) Stackelberg Output Choice
E) Cournot Output Choice