Question 7 The payoff matrix for a two-player normal form game is given below. A B C Denote the probability of playing \"M" for Player 1 as p and the probability of playing \"B\" for Player 2 as q. Given q > 0, what is the highest value of q for which playing 0 maximises Player 1's utility (that is, playing 0 is at least the equal-best choice)? Write your answer as a decimal number with 2 decimal places (eg. 0.05) Selected Answer: 0 [None Given] Correct Answer: [l 0.25 Answer range +/ O (0.25 0.25) Response Feedback; Draw the expected utility graph for each of Player 1. The function of O intersects the function of M at q = 1/4 or 0.25 Question 9 0 out of 10 points Consider an application of the Prisoner's Dilemma game where two countries in a cartel decide whether to Cooperate or Defect. If both choose to follow the cartel agreement and contin X each other, each receives a payoff of 2. If both decide to defect on each other, they both get -2. If one cooperates and the other defects, the first one loses 10 (she receives -10) while th Denote the probability of cooperating for Player 1 as p and for Player 2 as q. How much does Player 1 earn in the mixed-strategy Nash equilibrium of this game? Write your answer as a decimal with 2 decimal places (e.g. 0.25) Selected Answer: 2 -4 Correct Answer: -0.4 Answer range +/- 0 (-0.4 - -0.4) Response Feedback: In the mixed-strategy Nash equilibrium of this game, p = q = 4/5. Player 1 earns a payoff of (2 x 4/5 x 4/5) + (-10 x 4/5 x 1/5) + 0 + (-2 x 1/5 x 1/5) = -2/5 = -0.40