Question: Please answer this question for me! 4. (20 points) Two friends E and U jointly own a small business. E provides the capital, which we

Please answer this question for me!

Please answer this question for me! 4. (20 points) Two friends E

4. (20 points) Two friends E and U jointly own a small business. E provides the capital, which we denote by k where 0 S k S 1. U on the other hand provides labor which we will denote by l, 0 5 I S 1. The production function is m, and the price of the product is set at $1, so the total revenue is m, if E provides k units of capital and U provides l units of labor. The two friends share the revenue m equally. In order to provide k units of Capital E incurs a cost of '45. Likewise, in order to provide l units of labor U suffers a cost of g. E and U choose I: and l simultaneously. The payoff for each individual is the share of the revenue less the respective cost for the individual. Thus E's payoff function is .l/H '3', and U '5 pay off function is %\\/H g. Formulate the above problem as a Normal Form game and nd the pure strategy Nash Equilibria in the game

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