Malik is the top employee at the local Deloitte office, and he just received a competing offer from PwC. Deloitte is considering how to retain Malik and is choosing between offering him a one-time money bonus or offering him extra vacation time. Based on what they offer him, Malik can then choose to stay or leave. The payoffs are given in the following sequential game tree: At the Nash equilibrium, Deloitte will choose and Malik will respond with .

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500