**Answer:**

a) attached below.

b) for $x < $5000 will cause taking the drug to be part of the Nash equilibrium

c)** **will make the athletes feel better because the value their payoff will increase

**Explanation:**

<u>a) 2 * 2 payoff matrix describing the decision faced by the athletes </u>

**attached below **

when both players take the drug the payoff for each player = $5000 - x

when neither player takes the drug the payoff for each player = $5000

When only one player takes the drug his payoff = $10000 - x

<u>b) If we consider the value of $x to be involved in the Nash equilibrium then </u>

; $5000 - $x > 0 becomes the best response

**hence for $x < $5000 will cause taking the drug to be part of the Nash equilibrium**

c) Lowering the negative effect of the drug ( i.e. when the value of x is reduced )

will make the athletes feel better because the value their payoff will increase