Question: Consider a situation in which two competing companies choose between two technologies to manufacture a product. Technology A is a clean technology. Technology B pollutes

Consider a situation in which two competing companies choose between two technologies to manufacture a product. Technology A is a clean technology. Technology B pollutes a nearby river whose water both companies use as an input factor in their production process. The table below shows the yearly profit for each company (expressed in $1000) depending on the chosen technologies.

(a) Find the Nash equilibrium of the above game assuming it is played only once. Clearly state which action each player chooses in the Nash equilibrium.

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