9. Consider the reaction functions below. Indicate all NE and determine whether they are stable – explain. X2 X2 R2(x1) R1(x2) + XI R¡(x2) R2(x1)
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- A clothing store and a jeweler are located side by side in a shopping mall. If the clothing store spend C dollars on advertising and the jeweler spends J dollars on advertising, then the profits of the clothing store will be (36 + J )C - 2C 2 and the profits of the jeweler will be (30 + C )J - 2J 2. The clothing store gets to choose its amount of advertising first, knowing that the jeweler will find out how much the clothing store advertised before deciding how much to spend. The amount spent by the clothing store will be Group of answer choices $17. $34. $51. $8.50. $25.50.Suppose there are only five people in a society and each favors one of the five highway construction options in Table 16.2 (include no highway construction as one of the options). Explain which of these highway options will be selected using a majority paired-choice vote. Will this option be the optimal size of the project from an economic perspective?Question Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. i. How much will the hotel charge members of each group for the vacationpackage if it could identify the members in each group?ii. How much will the profit for AG Travel and Tour be? iii. Since AG…
- Which statements are true or false? S1: Multiple equilibria is a condition in which more than one equilibriumexists. S2: These equilibria sometimes may be ranked, in the sense that oneis preferred over another, but the unaided market will not move theeconomy to the preferred outcome.You are taking a multiple-choice test that awards you one point for a correct answer and penalizes you 0.25 points for an incorrect answer. If you have to make a random guess and there are five possible answers, what is the expected value of guessing? Group of answer choices -0.25. 0.25. 0.5. 1. 0.5. Individual Problems 18-5 When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, the auctioneer actively woos representatives of other museums that have no chance of winning to attend anyway. Suppose a piece of art has recently become available for sale and will be auctioned off to the highest bidder, with the winner paying an amount equal to the second highest bid. Assume that most collectors know that Simone places a value of $65,000 on the art piece and that she values this art piece more than any other collector. Suppose that if no one else shows up, Simone simply bids $65,0002=$32,500$65,0002=$32,500 and wins the piece of art. The expected price paid by Simone, with no other bidders present, is . Suppose the owner of the artwork manages to recruit another bidder, Yakov, to the auction. Yakov is known to value the art piece at $52,000. The expected price paid by Simone, given the…
- Given Q1 = 150 -3P1 + P2 + P3 Q2 = 180 +P1 - 4P2 + 2P3 Q3 = 200 +2P1 + P2 - 5P3 and TC =Q12 + Q1Q2 +2Q22 + Q2Q3 +Q32 + Q1Q3 Find the inversedemand function P = f(Q) and use Cramer’s rule to solve for thecritical value Q1. (Answer in two decimal places.) Use Cramer’s rule tosolve for the critical value Q2. (Answer in two decimalplaces.) Use Cramer’s rule tosolve for the critical value Q3. (Answer in two decimalplaces.) Calculate the Hessian matrix. What is the value of|H3|? (Answer in two decimal places.) Based on the Hessian, what can you say about the profit? (Answer in one word. )Jiffy-Pol Consultants is paid $1,000,000 for each percentage of the vote that Senator Sleaze receives in the upcoming election. Sleaze’s share of the vote is determined by the number of slanderous campaign ads run by Jiffy-Pol according to the function S = 100N/(N + 1), where N is the number of ads. If each ad costs $4,900 approximately how many ads should Jiffy-Pol buy in order to maximize its profits? A) 2,853. B) 1428. C)98 D) 477.What is the approximate value of Annie’s brand/store compared to Sam’s for an otherwise equal apple tree? What is the estimate for market share for Annie if she sells Gal Apple Trees at $15.95 vs. Sam selling golden Delicious trees at $24.95.?
- The Company wants to level the production mix at the pacemaker. The average daily demand and their variance for the five products in this product family is as shown in the following Table. Product ID A1 A2 B1 B2 B3 C Daily Demand ~ N(mean,variance) (144, 400) (120,400) (48,100) (48,100) (48,100) (24,25) A day is 432 minutes (after excluding paid breaks and lunch) and a pallet holds 12 units of any part. Items A1 & A2 are ordered daily, items B1, B2 & B3 once every three days and item C occasionally. The company keeps finished good stock for products A&B (with a buffer stock to cover 97.7% of demand surges) and produces C on demand. How would you schedule the average daily orders? How many units of stock are you going to keep in the finished goods supermarket? Consider the following demand for Monday: Product ID A1 A2 B1 B2 B3 C1 Monday Orders 168 108 156 0 0 36 Do you have enough stock and the…4.25 The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): State of Nature Low Demand Medium Demand High Demand Decision Alternative s1 s2 s3 Manufacture, d1 -20 40 100 Purchase, d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. Use a decision tree to recommend a decision.Recommended decision: Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand.EVPI: $Could you please answer part C? What will Celia’s first-order condition be in step 1? Your answer should bean expression that involves D