In an economy there are I agricultural firms. Each of these firms can lobby to induce the government to give a subsidy to the agricultural sector. Let a; denote the effort of each firm in the lobbying activity; the cost of this activity is given by c; (ai) = w;a; where w; > 0 is a constant. The amount of the subsidy is s= kaite II a; where k > 0 and l 20 are two constants. i=1 Consider a game in which firms decide simultaneously (and independently) their 1 effort in the lobbying activity (i. e. each firm i chooses ai). Show that each firm has a dominant action if and only if ( = 0. What is the dominant action in this case?