In the case of global pollution, the Nash equilibrium shows that if one nation does not regulate its pollution, other nations:
a. will have to regulate even more strictly.
b. will not regulate either because of international price competition.
c. will regulate but will bring charges in the WTO against the other .
d. will regulate, so they will not harm their own citizens.
Ans: b. will not regulate either because of international price competition.
Economics