Question: Solve all question please 4) Consider the lobbying game presented in Chapter 11 of the textbook (p. 133). The payoff matrix is given below: Y
Solve all question please

4) Consider the lobbying game presented in Chapter 11 of the textbook (p. 133). The payoff matrix is given below: Y N X L (-$5, -$5) ($25, $0) N ($0, $15) ($10, $10) To find the best response in mixed strategies, let p be the probability that Firm X lobbies the government and let q be the probability that Firm Y lobbies the government. a. Derive the best response function for Firm X given Firm Y's mixed strategy q. b. Derive the best response function for Firm Y given Firm X's mixed strategy p. c. Draw the two best response functions on a graph with p on the horizontal axis and q on the vertical axis. d. Find all the Nash Equilibria in both pure and mixed strategies
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