Michigan (MI) and Wisconsin (WI) both border Lake Michigan. Both states pollute Lake Michigan and both states suffer the consequences of the pollution. However, the two states face a prisoner’s dilemma of the sort studied in Chapter 12. Each country must decide whether to protect or not to protect Lake Michigan from pollution. The payoffs from the choices are shown in the table below.       Michigan     Protect Not Protect   Wisconsin Protect WI gains 500 MI gains 500 WI loses 300 MI gains 600 Not Protect WI gains 600 MI loses 300 WI loses 250 MI loses 250               From the table, we know that if Wisconsin chooses to protect the lake, Michigan will choose to ________________ the lake.  If Wisconsin chooses to not protect the lake, Michigan will choose to __________________ the lake Question 1 options:   protect;protect   not protect;protect   protect;not protect   not protect;not protect

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Michigan (MI) and Wisconsin (WI) both border Lake Michigan. Both states pollute Lake Michigan and both states suffer the consequences of the pollution. However, the two states face a prisoner’s dilemma of the sort studied in Chapter 12. Each country must decide whether to protect or not to protect Lake Michigan from pollution. The payoffs from the choices are shown in the table below.

 

 

 

Michigan

 

 

Protect

Not Protect

 

Wisconsin

Protect

WI gains 500

MI gains 500

WI loses 300

MI gains 600

Not Protect

WI gains 600

MI loses 300

WI loses 250

MI loses 250

           

 

From the table, we know that if Wisconsin chooses to protect the lake, Michigan will choose to ________________ the lake.  If Wisconsin chooses to not protect the lake, Michigan will choose to __________________ the lake

Question 1 options:

 

protect;protect

 

not protect;protect

 

protect;not protect

 

not protect;not protect

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