Consider a person who begins contributing to a retirement plan at age 25 and contributes for 40 years until retirement at age 65. For the first ten years, she contributes $2,000 per year. She increases the contribution rate to $4,000 per year in years 11 through 20. This is followed by increases to $9,000 per year in years 21 through 30 and to $14,000 per year for the last ten years. This money earns a return of 8 percent. First compute the value of the retirement plan when she turns age 65.

In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society? a. two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells.b. two airlines dominate air travel between city a and city b, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities.c. two superpowers decide whether to build new weapons or to disarm.d. in all of the above cases, the cooperative outcome of the game is good for the two players and bad for society