2 ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The benefit G of raising a cow for a rancher is 100-5G₁ per cow, where is the total quantity of cows using the grassland. The marginal cost of raising a cow is 10. Hence, the net benefit of raising cows for any rancher is (100-5G)g-10g, where 9 is the quantity of cows raised by the rancher. What is the quantity of cows that each rancher raises in a Nash Equilibrium?

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2 ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The benefit
of raising a cow for a rancher is 100-5G
per cow, where is the total quantity of cows using the
grassland. The marginal cost of raising a cow is 10. Hence, the net benefit of raising cows for any rancher is
(100-5G)g-10g, where 9 is the quantity of cows raised by the rancher. What is the quantity of cows
that each rancher raises in a Nash Equilibrium?
O
O
8
9
Transcribed Image Text:2 ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The benefit of raising a cow for a rancher is 100-5G per cow, where is the total quantity of cows using the grassland. The marginal cost of raising a cow is 10. Hence, the net benefit of raising cows for any rancher is (100-5G)g-10g, where 9 is the quantity of cows raised by the rancher. What is the quantity of cows that each rancher raises in a Nash Equilibrium? O O 8 9
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