2. Consider the following two player game in normal form: Player 2 R 2, 3 0, 5 0, 5 2, 3 Player 1 M 2, 3 3, 2 B 5,0 3, 2 2, 3 (a) Show that for Player 1, strategy T is strictly dominated by a mixed strategy in which actions M and B are played with positive probability. (b) Find a mixed strategy Nash equilibrium of this game. 323
Q: When the output gap is positive (an inflationary gap), the unemployment rate is below the natural…
A:
Q: Your roommate is thinking of permanently dropping out of school this semester. If his tuition…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: Question 3 (a)The cost of buying a new head office for a firm that sells oranges in a perfectly…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Please refer to the background information below to answer the following four questions. A perfectly…
A: Perfectly competitive markets are referred to the markets where all the firm sells an identical…
Q: At the end of 2021, the Federal Reserve took an inventory of its foreign currency reserves. Since…
A: NCO or Net Capital Outflows is defined as the purchase of the assets of a foreign country by the…
Q: What happens to consumer surplus when the supply curve moves left? Question 2 options: Since…
A: The markets are the place which are operated by the buyers and the sellers of various different…
Q: wo fadures are being considered for a particular job in a manufacturing firm. The pertinent data for…
A: Given information Fixture X Capital investment= $35000 Annual cost=$6000 Useful life=6 years Market…
Q: Given his current income, Rico’s demand for bagels is related to the price of bagels by the equation…
A: The demand curve is written as follows: Q = 580 − 16P And the income elasticity of demand is 0.5,…
Q: Among private consumption, private investment, government spending, and exports, which drives the…
A: In an economy, the periodic growth and decline which is being measured by GDP of the country is…
Q: The following table shows the price of a specific stereo receiver for a five-year period. Using…
A: Price index: - it is the measure of change in the price level, it measures the change in the price…
Q: 1. Suppose that a consumer with the utility function U = X0.25 y0.75 chooses a consumption bundle…
A:
Q: Suppose a basket of goods costs $50 in the U.S. and €20 in France. What exchange rate, in dollars…
A: "According to the purchasing power parity, exchange rate (domestic currency units per units of the…
Q: What market failures provide the rationale for Social Security?
A: Market failure is what is happening characterized by a wasteful circulation of labor and products in…
Q: bove table. Between years 1 and 2, real GDP grew by B) 4 percent. D) 10 percent. bove table. Between…
A: Growth rate computed as: Growth rate= (present - past)/Past Real GDP per capita computed as: Real…
Q: Kathy is withdrawing $125,409 from an account in which she invested 8 years ago. If the account paid…
A:
Q: 12. Which monetary policy tool did the US Federal Reserve introduce most recently? a. Required…
A: Monetary policy is a kind of economic policy that regulates the amount and rate at which an…
Q: One of the biggest challenges for stimulating economic growth in high-income countries is Group of…
A: Economic growth over the long term can have a very positive impact on a country. Long-term growth…
Q: A university student recieved $1,000 upon graduation at age 20 years. This person was hired by one…
A: The average propensity to consume (APC) refers to a metric that evaluates how much of one's income…
Q: QUESTION 7 Now we consider a Sequential Game, and the firm who enters first can either apply the…
A: We have sequential game between two firm Aand B and where Firm is moving First.
Q: The area between the supply curve and the price (or, to be more accurate, a horizontal line…
A:
Q: Ginger has agreed to a lawsuit settlement of S700,000 with a certain pharmaceutical company. The…
A: Answer;
Q: As an economist, please consider the extent to which the increasing enrollment in…
A: There are various reasons why increased government-sponsored healthcare enrollment may justify…
Q: In the short run, if there is a tax cut, output will and the exchange rate will O increase;…
A: The measure that depicts the rate of one currency being measured in terms of another currency in…
Q: Identify the nature of supply relationship that nestle has tied up with the farmers in Ecuador?
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…
Q: 10. Questionable business practices according to antitrust agencies Complete the following table by…
A: There are different pricing strategies followed by retailers and producers, such as tying, resale…
Q: 1. The country of Florlandia is the world’s largest producer of plants and flowers. In 2021, the…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: . Suppose that fixed costs for a firm in the automobile industry (start-up costs of facto- ries,…
A: *Answer:
Q: As described in the chapter, the Federal Reserve in 2008 faced a decrease in aggregate demand caused…
A: Given:- Fed reserve faced fall in aggregate demand(AD) and fall in short run aggregate supply(AS).…
Q: How long in years will a certain sum of money to triples its amount vhen deposited at a rate of 13%…
A: Let the principal amount be P. The sum will be 3P. We will use the following formula for compound…
Q: QUESTION 19 Y the cost of smokestack scrubbers (to minimize polution) is $3000 and the damage of the…
A: The Coase theorem postulates that when property rights are clearly defined, perfect competition…
Q: Which of these does NOT cause shifts in short run aggregate supply (SRAS Nominal wages O Firms'…
A: Short run aggregate supply curve shows a positive relationship between price and output. It slopes…
Q: With a fixed exchange rate, what would be effective stabilization policy during a recession? O…
A: Meaning of Exchange Rate: The term exchange rate refers to the situation under which a particular…
Q: 14) An analyst has found that a company's cost and revenue functions for a particular product are…
A: Marginal cost is the additional cost incurred to produce an additional unit of output. Marginal…
Q: 4. What must the relationship between marginal productivities and input prices if a firm is not…
A: The additional output, return, or profit generated per unit by benefits from production inputs is…
Q: Assume that a basket of goods consists of 10 Chalupas, 2 Pepsis, and a package of Rolaids. Year…
A: Consumer price index measures the value of market basket of goods and services bought by a consumer.
Q: 14) The A) increase; rigid C) decline; flexible in employment during a recession is smaller if wages…
A: Recession refers to the period of economic downfall.
Q: The first cost of a pipe forming machine is Php 1,000,000.00. It can produce 10,000 pipes during its…
A: Answer; a. Fixed cost per piece of pipe:15 b. Variable cost per piece of pipe:51 c. Total…
Q: The economy is in a recession. The government enacts a policy to increase spending by $10 billion.…
A: Answer; Answer is A. $100 billion. Spending multiplier = 1/MPS = 1/0.1 = 10. Increase…
Q: In the short run, if the central bank decreases the money supply, the currene will and output will…
A: Central bank can control money supply in an economy by open market operations, required reserve…
Q: l quantity produced in the market. Each firm i faces the same lin C(q) = 2qi- %3D the total quantity…
A: *Answer:
Q: bank pays interest at the rate of 6% per year, compounded monthly. If a person deposits $2500 in a…
A: Periodic compund interest rate formula-value of deposit A = P( 1+ (r/n))^nt P= principal amount=…
Q: Average variable cost is always increasing as output increases whenever... Group of answer choices…
A: Variable cost refers to the cost that changes as output or production changes. Average variable cost…
Q: Gestalt, Inc. uses a kanban system in its automobile production facility in Germany. This facility…
A: Manufacturing, supply chain management, and project management are evaluated at the pre-processing,…
Q: Given the supply - demand function of printers in Vietnam as follows: Sx = -20000 + 250P %3D Dx =…
A: Given, Supply function Sx = -20000 + 250P And demand function Dx = 160000-350P Let's first…
Q: Which of the following can be used as a method for reducing the problems of moral hazard and/or…
A: Moral hazard or adverse selection are caused by the asymmetric information.
Q: (a) The cost of buying a new head office for a firm that sells oranges in a perfectly competitive…
A: in perfect competitive market, there are many number of sellers and buyers which turns the market…
Q: In the given diagram, BDE represents the average variable cost and BCDF represents the marginal cost…
A: ANSWER IS GIVEN BELOW
Q: If the government places a tax of $500 on luxury cars, what happens in the market? Please assume…
A: Demand refers to the quantity that a consumer wishes to purchase at a given price in a given period…
Q: Refer to the following table when answering the following question East and West Fish and Chip…
A: Given information Fish Chip West 200 100 East 60 20 Labor in west=100 Labor in…
Q: The fact that humans are ultrasocial means that: O we're bad at avoiding COVID-19 we tend to see…
A: Ultrasocial refers to the organization of humans and social insects with the division of labor,…
Step by step
Solved in 6 steps with 1 images
- 2. Kier, in The scenario, wants to determine how each of the 3 companies will decide on possible new investments. He was able to determine the new investment pay off for each of the three choices as well as the probability of the two types of market. If a company will launch product 1, it will gain 50,000 if the market is successful and lose 50,000 if the market is a failure. If a company will launch product 2, it will gain 25,000 if the market is successful and lose 25,000 if the market will fail. If a company decides not to launch any of the product, it will not be affected whether the market will succeed or fail. There is a 56% probability that the market will succeed and 44% probability that the market will fail. What will be the companies decision based on EMV? What is the decision of each company based on expected utility value?The mixed stratergy nash equalibrium consists of : the probability of firm A selecting October is 0.692 and probability of firm A selecting December is 0.309. The probability of firm B selecting October is 0.5 and probability of firm selecting December is 0.5. In the equilibrium you calculated above, what is the probability that both consoles are released in October? In December? What are the expected payoffs of firm A and of firm B in equilibrium?Each of the two players independently (and simultaneously with the other) decides whether to go to a play or a concert. Each would rather go with the other to a concert than with them to a play, but prefers this to not being together, in which case they don't care where they go alone. Additionally, each is indifferent between attending the play together and participating in a lottery where both go to the concert with a probability of ¾ and to different events with a probability of ¼. Describe the game in matrix form and find all its equilibria under the assumption that the players have von Neumann-Morgenstern preferences.
- 5.Each of Player 1 and Player 2 chooses an integer from the set {1, 2, ..., K}. If they choose the same integer, P1 gets +1 and P2 gets -1; if they choose different integers, P1 gets -1 and P2 gets +1. (a) Show that it is a NE for each player to choose every integer in {1, 2, ..., K} with equal probability, K1 . (b) Show that there are no NE besides the one you found in (a).You and a rival are engaged in a game in which there are three possible outcomes: you win, your rival wins (you lose), or the two of you tie. You get a payoff of 50 if you win, a payoff of 20 if you tie, and a payoff of 0 if you lose. What is your expected payoff in each of the following situations? (a) There is a 50% chance that the game ends in a tie, but only a 10% chance that you win. (There is thus a 40% chance that you lose.) (b) There is a 50–50 chance that you win or lose. There are no ties. (c) There is an 80% chance that you lose, a 10% chance that you win, and a 10% chance that you tie.4. The preferences of agents A and B are representable by expected utility functions such that uA(x) = 5x^1/3 +30, and uB(x)= 1/5x - 20. Then, the following allocation of the expected returns of a risky joint investment of A and B as represented by lottery L = ((2/3);1500), (1/3);120)) is Pareto efficient: (a) xA = (500,100), xB = (1000,20) (b) xA = (100,100), xB= (1300,20) (c) xA= (80,80), xB = (1420,40) (d) xA = (750,60), xB= (750,60) (e) NOPAC
- True/False a. Consider a strategic game, in which player i has two actions, a and b. Let s−i be some strategy profile of her opponents. If a IS a best response to s−i, then b is NOT a best response to s−i. b. Consider the same game in (a). If a IS NOT a best response to s−i, then a does NOT weakly dominates b. c. Consider the same game in (a). If a mixed strategy of i that assigns probabilities 13 and 23 to a and b, respectively, IS a best response to s−i, SO IS a mixed strategy that assigns probabilities 32 and 13 to a and b, respectively. d. Consider the same game in (a). If a mixed strategy of i that assigns probabilities 13 and 23 to a and b, respectively, is NOT a best response to some strategy profile of her opponents, s−i, NEITHER is a mixed strategy that assigns probabilities 32 and 13 to a and b, respectively. e. Consider the same game in (a). If a IS a best response to s−i, SO IS any mixed strategy that assigns positive probability to a. f. Consider the same game in (a). If a…Determine the optimum strategies and the value of the game with the followingpayoff matrix of player A where A1, A2 are the strategies for player A and B1, B2 are for player B.B1 B2A1 5 1A2 3 4Consider the game of Chicken in which each player has the option to “get out of the way” and “hang tough” with payoffs: Get out of the way Hang tough Get out of the way 2,2 1,3 Hang tough 3,1 00 a. Find all pure strategy Nash equilibria, if they exist b. Let k be the probability that player 1 chooses “hang tough” and u be the probability that player two chooses “hang tough.” Find the mixed stragety Nash equilibria, if they exist
- Consider the following game 1\2 Y Z A 10,3 3,9 B 8,5 6,1 Suppose Player 2 holds the following belief about Player 1: θ1 (A,B) = (9/10,1/10) What is the expected payoff from playing ‘Y’ ? What is the expected payoff from playing ‘Z’ ? Based on these beliefs, player 2 should respond by playing _____Q56 A Nash equilibrium is an outcome... a. Achieved by cooperation between players in the game. b. That is achieved by collusion where no party has an incentive to change their behaviour. c. Where each player's strategy depends on the behaviour of its opponents. d. That is achieved when players in the game have jointly maximized profits and divided those profits according to market share of each player. e. Where each player's best strategy is to maintain its present behaviour given the present behaviour of the other players.Consider the following variation to the Rock (R), Paper (P), Scissors (S) game:• Suppose that the Player 1 (row player) has a single type, Normal.• Player 2 (column player) has two types Normal and Simple.• A player of Normal type plays this zero-sum game as we studied in class whereas a player of type Simple always play P.• Player 2 knows whether he is Normal or Simple, but player 1does not.a) Suppose player 2 is of type Normal with probability 1/3 and of type Simple with probability (2/3). Find all pure strategy Bayesian Nash Equilibria.b) Suppose player 2 is of type Normal with probability 2/3 and of type Simple with probability (1/3). Find all pure strategy Bayesian Nash Equilibria.