Two animals are fighting over some prey. Each can choose one of two stances: passive or aggressive. Moreover,

a. Each prefers to be aggressive if its opponent is passive, and prefers to be passive if its opponent is aggressive;
b. Given its own choice, each animal prefers the outcome when its opponent is passive to the outcome in which its opponent is aggressive.

Choose your own payoff numbers to formulate the interaction as a matrix game and find its Nash equilibria.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan