Company A and Company B operate in a forest region known for its rich biodiversity. Both companies can choose between sustainable logging (environmentally friendly practices) or heavy logging (maximizing short-term profits). If both companies engage in sustainable practices, the forest can regenerate, providing long-term benefits. However, if both companies opt for heavy logging, the forest could become depleted, leading to economic loss for both. Company A Sustainable Logging Heavy Logging Company B Sustainable Logging 30,30 10,40 Heavy Logging 40,10 20,20 (a) Do either of the two companies have a dominant strategy? If they do, show it and explain what dominance means in this context. (b) Does this “game” have a Nash equilibrium? If so, show it and explain what a Nash equilibrium is. 3 (c) Do you think that this “game” constitutes a social dilemma? If so, explain what makes it a social dilemma and what could be done to mitigate the negative implications that arise from it.