Bоnus questiоn 1 The “Nаsh Equilibrium (NE)”, nаmed аfter Nash (1950) builds оn the notion that every player finds her “best response” to each of her rivals’ strategies. Nash equilibrium (NE). A strategy profile is a NE if every player chooses a best response to her rivals’ strategies. Consider a two-player simultaneous-move game represented by a payoff matrix. The players are Firm 1 and Firm 2, who independently and simultaneously choose between two technologies, technology A (environmentally friendly) and technology B (conventional, polluting). The payoff matrix lists outcomes for each possible combination of technology choices. Each cell of the matrix reports the payoff pair as follows: (the payoff to Firm 1 under the corresponding strategy profile, the payoff to Firm 2 under the corresponding strategy profile) Please provide the strategic profile of the Nash Equilibrium (NE) _____________ Hint: In this game, there is only one NE. Hint: We refer to a “game” every time we consider a scenario in which the action of one agent (either individual, firm, or government) affect other agents’ well-being. Elements of game: Player: The set of individuals, firms, government or countries, that interact with one another. We consider games with 2 or more players. Strategy: A complete plan describing which actions a player chooses in each possible situation (contingency). Payoff: What every player obtains under each possible strategy path