(Answered) 1 if each industry assumes the other one will not invest

Economics

1. If each industry assumes the other one will not invest, what is their optimal course of action?

2. What if they assume the other industry will invest?

3. What is the role of changing business optimism in this economy?

4. How do your answers change when government offers an investment subsidy worth $3 billion to each industry? Is society better off?

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