4. Consider the following game. Find the dominant strategy for each player (if any). What is the Nash Equilibrium in pure strategies of this game? Player 2 L C 10,15 6,27 12,30 U Player 1 20,18 16,15 8,24 M 6,15 18,9 10,12
Q: A broadband service company borrowed $2 million for new equipment and repaid the loan in amounts of…
A: Initial Amount = 2000000 Cash Flow in year 1 nd 2 = 209,000 In year 3 = 2200000
Q: What are the best decision-making strategies for a firm that relocates in an underdeveloped country?
A: An economy that is undeveloped is one that is characterized by. Low per capita GDP.Maybe less than…
Q: 7 A firm believes the elasticity of demand for its product is -5 and it is producing a quantity…
A: The monopoly firm maximizes profit where the MR=MC.
Q: Discuss the fuel tax increase impact the public social welfare
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: Potential GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) On the 45 degrees line: GDP is equal…
A: We have 45° line for GDP and aggregate expenditure.
Q: Explain the term federal deficits.
A: The term federal is related to the involvement of government.
Q: Your boss asks you to calculate the selling price of a good such that the profit margin is 34%. The…
A: Answer to the question is as follows:
Q: Suppose that every consumer is on his/her budget constraint where MRS = 0.1, the price of good X is…
A: The marginal rate of substitution (MRS) is the quantity of one product that a customer will consume…
Q: What could be the major learnings that could developed by taking a introductory microeconomics…
A: The Microeconomics is an economics that deals to satisfy an individual producer, an individual…
Q: Question 1 There are three policy variables that the government and the Bank of Zambia control that…
A: The government adjusts taxation and government spending in order to manage the economy whereas the…
Q: A/an election is one in which candidates run as individuals, without any party affiliation. Select…
A: Election is a process in which the general public vote for the position of official or political job…
Q: Determine whether the examples below represent non-rival or non-excludable products: A. Both B.…
A: non rival and non excludable are the two main characteristics of PUBLIC goods . non rival means the…
Q: 1. Provide three reasons why it is important for environmental economists to adhere to a code of…
A: Spillover effects: It refers to those effects that are unrelated events that occur in an economy.…
Q: The graph illustrates the labor market in a country that does not tax labor income. Suppose that the…
A: Labor market Government introduces a Social security tax of $2 an hour. This will shift the labor…
Q: What are standard deductions?
A: There exists a difference between taxable income and the total amount of income earned by the…
Q: The market for lemons refers to a situation where sellers are better informed than buyers about the…
A: In a market, sellers can sell two types of products, that are new and lemon, especially in…
Q: a) What is the output of beer per unit of labor in Austria? b) / What is the output of sausages per…
A: In business analysis, the production possibility frontier (PPF) is a curve illustrating the varying…
Q: BigSwaba Corp produces virus home test kits which it sells in the market. It pays a marketing…
A: Given demand function P=48+m^0.5-0.5q TC=200+0.5q^2+m
Q: What is most likely to increase the total output of a firm in the short run? A a rise in the length…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: Explain the two conditions required for an instrumental variable. Make sure you express both…
A: In observational studies, instrumental variables (IVs) are used to compensate for confounding and…
Q: [CLO-1] The options for investing money are represented as the following: 1. 5% APR compounded…
A: Effective annual rate = [1 + i/n]n - 1 Where i =Interest rate, n = Compounding periods.
Q: According to the textbook, if firms are competitive, then labor-market discrimination is Select one:…
A: Labor market discrimination is when labor is treated differently with respect to the wage rate, work…
Q: 1)The 'Banks' in the Banks sub-model refers to
A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…
Q: 3. Christina loves pizza and hates burger. Her utility function is U(p – b) =p – →b´, | where p is…
A:
Q: For the data in the following table, the consumption function is C = 800 + 0.6(Y – T). Fill in the…
A: Planned aggregate expenditure in a closed economy is the sum of consumption, planned investment, and…
Q: A government budget surplus is __________. Question 22 options: a situation in which the amount…
A: Government budget balance depends on how much government is giving and how much it is getting.
Q: Suppose Julie's salary went from $45,000 to 13. $175,000 in 12 years. a. Assuming she got the same…
A: Given, PV = $45000 FV = $175,000 n =12Inflation rate=3%
Q: our nephew and his college friends are starting a junk-hauling business. You advise them not to base…
A: In this question, nephew and his college friends are starting a junk-hauling business and in this…
Q: 1. What relationship does the income expenditure model represent? Why is it used?
A: Pay and Expenditure Model. The pay consumption model of financial aspects was created by John…
Q: In the aggregate expenditure model the investment curve is A. Upward sloping B. Downward…
A: Aggregate expenditure is the sum of consumption, investment, government purchases and net exports.…
Q: Explain how changes in exchange rates impact the economy through the aggregate demand- aggregate…
A: People's judgments of the value of money are frequently stable from one day to the next. Even the…
Q: $1 and Px, = $2. How 4-11. Consider the production function Y = X" X". Px, many units of X, and X,…
A: For finding out the amount of X1 and X2 needed to produce one unit of Y, we need to equate the ratio…
Q: 1. A country produces milk and butter, and it has published the following macroeconomic data. Year 1…
A: Real GDP is a measure of a country's gross domestic product that has been adjusted for inflation.…
Q: Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 unsaction S14_S15: Households and -profit…
A: Answer: Nominal GDP= Nominal GDP refers to the monetary value of all the goods and services produced…
Q: Explain the term Capitalism?
A: Capitalist economy: - it is that economic system where the price, quantity, and types of goods and…
Q: Sacramento Gas and Electric is a firm that represents a natural monopoly. Assume that there will be…
A: Since , it is given that there is natural monopoly enjoyed by the Sacramento Gas and Electric firm.…
Q: (a) Define Patent and explain types of patent. (b) Describe the impact towards society if Grab…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: You are the head of the central bank and you want to maintain 0 percent long-run inflation. You use…
A: The quantity theory of money shows the relationship between the price change and the money supply in…
Q: Suppose the following data describe a nation's population: Year 1 Year 2 Population 500 million 520…
A: a. Unemployed =Labor force * Unemployment rate Unemployed in year 1=270*0.05=13.5 million Unemployed…
Q: In econometrics in R, what does it mean when the AME for a variable is negative, but the coefficient…
A: In econometrics we we use linear regression model to estimate the the effect of independent variable…
Q: 7 A firm has this cost function: C = 4000 - 7Q + 8Q2. The firm is currently producing 5 units of its…
A: Cost Function = C = 4000 - 7Q + 8Q2 where Q = 5
Q: Consider the following Keynesian macroeconomic model Y = C +1+G C = 200 + 0.8Y = 1000 – 2000R -…
A: Here, We are given that, Y=C+I+G ..(1) C= 200 + 0.8Y ..(2) I=1000 - 2000R ..(3)…
Q: 2) Draw the PF & Labor Market model assuming that initially the country Austria had 200,000 workers…
A: Given that; Austria had 200,000 workers at a wage of $20.00 per hour and producing close to $2.5…
Q: a. Suppose Big Country can produce 80 units of X by using all its resources to produce X or 60 units…
A: Opportunity cost refers to the cost of the next best foregone. In other words it is the cost of…
Q: Q4.Romer model predicts that the more labor you dedicate to generating ideas, the a) faster you…
A: The Romer (1986) Growth Model is a theoretical model of economic development.Using a work that…
Q: The table below depicts the revenue for the only restaurant in a small rural town. It costs the…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker…
A: When businesses or individuals work together to manipulate a market or price for their personal…
Q: Given an initial equilibrium in the money market and foreign exchange market, suppose the Federal…
A: When the fed tightens the money supply by increasing interest rate, it shift the Money supply curve…
Q: Modified True or False: State whether each statement is true or false. If the statement is false,…
A: The diminishing returns occurs in the short run. All factor of production are not variable in the…
Q: How can a bank's instability be reduced and by what institution.
A: The depository institutions are those financial institutions which accept monetary deposits from…
Step by step
Solved in 2 steps
- answer the ff: Suppose that each company cancharge either a high price for tickets or a low price. Ifone company charges $300, it earns low profit if theother company also charges $300 and high profit ifthe other company charges $600. On the other hand,if the company charges $600, it earns very low profit ifthe other company charges $300 and medium profitif the other company also charges $600.a. Draw the decision box for this game.b. What is the Nash equilibrium in this game?Explain.c. Is there an outcome that would be better than theNash equilibrium for both airlines? How could itbe achieved? Who would lose if it were achieved?5 Suppose two players play one of the two normal-form games shown in Figure 1. L U 0,-1 D 2,4 R 2,0 6,0 L U | 4,-1 D 2,-2 R 2,0Now suppose that Player 2 knows which game is being played, but Player 1 does not. Find the pure strategy Bayesian Nash equilibrium of this game.Consider the following game: Player 2 In Out Player 1 In -2,-2 2, 0 Out 0, 2 0, 0 (a) What is the Nash equilibrium of this game, or what are the Nash equilibriaof this game? (b) Does either firm have a dominate strategy (a strategy that is always abest response)? Which? (c) Suppose Player 1 could move before Player 2 and Player 2 could observe Player 1’s move. What do you think would happen?
- 1. Consider the following simultaneous move game Player 2 C D Player 1 A 4,3 4,-2 B 2,2 3,-1 C 3,0 4,0 d) Suppose the game is now played sequentially where Player 1 chooses first, player 2 observes 1’s choice and then makes his own choice. What are the Nash equilibria of this sequential game?1. Consider the game where initially She chooses between "Stay Home" and "Go Out". If She chooses "Stay Home" then She gets 2 and He gets 0. If She chooses "Go Out" then they each simultaneously choose "Movie" or "Concert" where the payoffs are 0,1 or 3 as in the Battle of the Sexes Game. What are the subgame perfect Nash Equilibria of this game ?Consider the following price game: Firm 1 Firm 2 High Low High 20, 20 12, 24 Low 24, 12 14, 14 Remark: In simultaneous move games (games with rows and columns) theconvention is to write the row player’s payoff first and the column player’spayoff second. (a) What is the Nash equilibrium of this game? Recall that for each playeryou should find the best response to each of the opponents’ strategies andunderline the associated payoff. Then look for a cell where both strategiesare best responses to each other. This is a Nash equilibrium. (b) Does either firm have a dominate strategy (a strategy that is always abest response)?
- Consider Bernard \ Mary Left Center Right Top 0,5 1,0 2,2 Bottom 1,0 0,3 2,2 The first number in a cell denotes the payoff to Bernard and the second number denotes the payoff to MaryForexample: πB(B,L)=1and πM(T,L)=5. a Give all pure strategy Nash equilibria of this one-shot game, if any. Briefly explain.Let Bernard play Top with probability p and Bottom with probability 1 − p; let Mary play Left with probability qL , Center with probability qC and Right with probability qR = 1 − qL − qC . b Give all mixed strategy Nash equilibria of this game.on 8.1 Consider the following game: Player 1 A C D 7,6 5,8 0,0 Player 2 E 5,8 7,6 1, 1 F 0,0 1,1 4,4 a. Find the pure-strategy Nash equilibria (if any). b. Find the mixed-strategy Nash equilibrium in which each player randomizes over just the first two actions. c. Compute players' expected payoffs in the equilibria found in parts (a) and (b). d. Draw the extensive form for this game.4. Correlated EquilibriaConstruct an example (not one from class or the reading) of a Normal form game with a correlated equilibrium that is not a Nash equilibrium.
- Solve for the Nash equilibrium (or equilibria) in each of the following games. (a) The following two-by-two game is a little harder to solve since firm 2’spreferred strategy depends of what firm 1 does. But firm 1 has a dominantstrategy so this game has one Nash equilibrium. Firm 2 Launch Don’tFirm 1 Launch 60, -10 100, 0 Don’t 80, 30 120, 0 What is the Nash equilibrium of this simultaneous-move game? (b) What would the outcome of this game be if instead firm 1 moved first and then, after seeing what firm 1 chose, firm 2 chose it strategy? In this case firm 1 doesn’t necessarily need to choose a best response, but firm 2 must choose a best response since it moves second.What is Ann's maximin strategy? Game Bob L RAnn U 10,-1 4, 4 D 4, 1 8, -1 Select one: a.none of the other answers b.4/7 U + 3/7 D c.2/5 U+ 3/5 D d.2/7 U + 5/7 D e.3/5 U + 2/5 D