Two Logging Companies Are Deciding Whether or Not to Cut

Two logging companies are deciding whether or not to cut down a significant portion of a particular forest that both have access too. Both companies understand the environmental consequences of their actions, knowing that they are trading off higher profits for a better outcome from society's point of view. The payoffs facing these companies are given in the table below.

From the table, we know that if Company 2 chooses to cut, Company 1 will choose to _______ the forest. If Company 2 chooses to not cut, Company 1 will choose to _______ the forest.

A) cut, do not cut
B) cut, cut
C) do not cut, do not cut
D) do not cut, cut