Chrome File Edit View History Bookmarks Profiles Tab Window Help 4 28 8 100% 27 Sat 11:02 AM Q E hw8 - PADP6950 Economic Found Policy Analysis Spring 2023 64267 + uga.view.usg.edu/d21/le/content/2745747/fullscreen/45114284/View E Update hw8 el Idan Print Download ED arly 1 of 1 - + Automatic Zoom Suppose that Russia and Australia (the two biggest producers of diamonds) make an agreement to both keep the production of diamonds low in order to keep the price high. After reaching this agreement, each country must decide whether to follow the agreement. Suppose that they are faced with the following decision: Australia's Decision > > High Production Low Production Russia's High ($40 b; $40 b) ($60 b, $30 b) Decision Production Low Production ($30 b, $60 b) ($50 b, $50 b) where cells contain (Russia's profit, Australia's profit). a. If the game is played only one time, characterize each country's best strategy. b. What is the Nash equilibrium? Is the Nash equilibrium pareto efficient? Briefly explain why or why not. c. If this were an infinitely repeated game, what outcome would you expect to emerge as the equilibrium? Briefly explain. " tv . & " qq 4