A partnership will generate revenue p = 2x + y + xy, where x and y are the efforts of partners 1 and 2, respectively. Partners bear effort costs of 2x² and 0.5y2, respectively, and they share the revenue equally. What is the ratio of the equilibrium efforts x/y? 1/2 1
Q: Create a graph for the aggregate expenditures (AE) model in Excel using the data from Table 1: A…
A: A country with a closed, private economy prohibits foreign economies from affecting domestic…
Q: The following data from a random sample of individuals that are 25 years old. Note, wage is the…
A: Given: Wage educ 12.18 13 12.18 11 20.09 16 7.39 12
Q: Fannie Mae, Freddie Mac, and similar government-sponsored enterprises obtain their funds from Group…
A: Fannie Mae, Freddie Mac, and similar government-sponsored enterprises main purpose is to support the…
Q: In Autarka 2 amusement parks, Alfonso's wonderland and Bernice's rides there are 9600 people who…
A: Let, the price of admission at Bernice's Wild Rides be = $PA. The number of customers is x.…
Q: Samantha retired from the fire department. She started working an hour or two a day at a paid job in…
A: When talking about employment, it can be said that an individual who lies in the working age…
Q: What options from the drop box can be chosen as explanation for both questions?
A: A production possibility frontier is a graph that displays many combinations of two potentially…
Q: 1. A tiny economy only produces baseball bats and sells them in dollars. In 2020, they produced 500…
A: Nominal GDP is that GDP which measures on the current year price level. On the other Real GDP is…
Q: An analyst is given the data in Table 1 for the annual sales for Company XYZ, a maker of paper…
A: Given Intercept value =-94.88 Slope coefficient (industry sales) =0.2796 Interpretation of slope…
Q: The following table shows nominal GDP and an appropriate price index for a group of selected years.…
A: GDP or Gross Domestic Product is defined as the value of final goods and services, which is bought…
Q: 10. Dependent & independent variables; positive & inverse relationships: Consider the curve labelled…
A: Equilibrium refers to the point where demand curve intersect supply Curve
Q: Jordan usually pays a price between $14 and $20 per kilogram of sugar. His monthly total expenditure…
A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…
Q: 8. Read the Washington Post article "Chicago poised to create one of the nation's largest guaranteed…
A: Income: It refers to the money that people earn. An increase in income makes people buy more goods…
Q: A monopolist book publisher with a constant marginal cost of 2 and no fixed costs sells novels in…
A: Given The marginal cost of a book =2 Fixed cost =0. The inverse demand for books in country 1 is…
Q: . In the Solow growth model, defining s as the savings rate, Y, as output, and Ct as consumption,…
A: ANSWER: (5). Solution- In solow model, s¯ = saving rate Yt = Output Ct = consumption…
Q: A decision-maker with initial wealth w> 0 is choosing how many tickets to buy for a raffle. Tickets…
A: Price of a ticket = 1 Number of tickets bought = y such that y ( 0 to w ) Income = w Reward…
Q: upply and demand curve for Tesla Model S electric cars is given in the figure below. The equilibrium…
A: In the free market, the forces of demand and supply determines the equilibrium in the market. The…
Q: For a certain commodity the supply equation is given by S=2p + 5 At the price of $1, there is a…
A: demand refers to the quantity that a consumer wishes to buy at a given price in given period of…
Q: A corporate bond returns 12 percent of its cost (in present value terms) in the first year, 11…
A: Given that, A corporate bond return in first year = 12% or 0.12 A corporate bond return in second…
Q: If the Los Angeles Lakers had a 42-30 record in the shortened 2020-21 NBA season and then go 50-32…
A: Lakers performance has increased from 42-30 in 2020-21 to 50-32 in 2021-22 , the demand to watch…
Q: Which of the ff. is correct with regards to the demand curve? A. If the price of the good increases,…
A: Demand curve visually represents the quantity demanded by the consumers at different price levels.
Q: In Italy, firms pay tax on reported profits at a constant proportionate rate t€ (0,1). If the firm's…
A: Probability of audit = p Probability of no audit = (1- p) Tax without audit Reported = tr Tax…
Q: urrently there is an incumbent monopoly in a market. Next year, a potential entrant may enter the…
A: The Nash equilibrium is the best course of action provided the action of rival firm has been given.…
Q: Amir is a risk averse decision-maker with von Neumann-Morgenstern utility u(x) that is strictly…
A: As per the given information A utility function is strictly increasing and continuous. That means…
Q: d)Assume that all the information given previously is the same and the defaultrisk premium for…
A: For corporate bonds with a AAA rating, the default risk premium is 1.5 percent; whereas, for bonds…
Q: Please explain why this statement is (False). The unbiased expectations hypothesis of the term…
A: The unbiased expectations hypothesis expresses that the forward loan costs are unprejudiced…
Q: If a server was laid off at the beginning o the pandemic due to a lack of customers coming to their…
A: There are various kinds of Unemployment Cyclical Unemployment Frictional Unemployment Structural…
Q: A restaurant hires cooks and waiters. Cooks earn $10 an hour; waiters earn $5 an hour. The manager,…
A:
Q: Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross…
A: exports are the goods and services that are sold to other countries and imports are the goods and…
Q: Give four (4) economic activities that generate both positive and negative externalities?
A: We know that An externality is a positive or negative side effect of production or consumption in…
Q: 2. Now assume that CC Inc. is hiring Marie as a consultant to computerize its office operations.…
A: Utility is a gauge of how contented a person feels after consuming certain goods. To put it another…
Q: Select between the two options using the corporate MARR of 15% per year and a future worth analysis…
A: To compare future worth and select the best investment choice, we translate all cash flows into the…
Q: . With both words and diagrams analyze the effects on equilibrium price and quantity when…
A: Demand curve represents an inverse relationship between the price level and the quantity demanded by…
Q: Suppose a firm has following total cost function: TC=(2Q+4)(Q+3)+240. Find the fixed cost (FC),…
A: Given, TC=(2Q+4)(Q+3)+240 Total cost is defined as the total expenses that a company or firm has to…
Q: a. Butter and toast are often consumed together. Both the equilibrium price of toast and the…
A: Introduction When the quantity of supply of goods matches the demand of goods, it is called…
Q: In September there are 10,000 people classified as unemployed and the size of the labor force is…
A: Unemployment is the situation of one who is capable of working and seeking work but is unable to…
Q: The graph below provides a supply and demand curve for food servers, complete 1a – 1d using the…
A: Equilibrium exists when there is no change. In light of this, it is clear that an equilibrium price…
Q: s Dr. Gonzalez drinks five beers, his total utility rises from 5 to 45 when he drinks one beer. His…
A: Marginal utility is the utility gained by consuming one extra unit of a good. Given Dr. Gonzalez's…
Q: A. Suppose that the economy is characterized by the following behavioral equations: • C = 160+ 0.6…
A: Here we are given various demand side components of the economy which includes : consumption ,…
Q: A man borrowed P2,000 from a bank and promised to pay the amount for one year. He received only the…
A: Here it is given that- Amount borrowed from bank =P 2,000Amount recieved after the bank collected an…
Q: ABC Company has decided that Tom Terrific is not going to pay them. Tom owes ABC $500. ABC will:…
A: In a market, when a firm enters into a contract, it provides goods and services in return for money.…
Q: A. Suppose that the economy is characterized by the following behavioral equations: • C = 160+ 0.6…
A: Given Consumption function C=160+0.6Yd ......(1) I=150 G=150 T=100 We know that Yd =Y-T…
Q: Which of the ff. will shift the demand curve for beef to the right? A. Widely publicized study that…
A:
Q: One of the assumptions of classical theory of international trade is constant returns to scale but…
A: The production function depicts the technical association between the quantities of output (Q) that…
Q: Consider the insurance problem from class in which an agent with wealth w dollars has a chance 7 €…
A: Given information Initial wealth=W Chances of loss lies between 0 to 1 Loss amount=l Insurance…
Q: . A firm’s production is represented by the following function: Q = L0.4 K0.6 . The rental rate of…
A: The link between the physical production and the numerous production parameters, or the output to…
Q: 1. When the official dollar price of a foreign currency is set below its equilibrium level, the…
A: Exchange rate is the price of a currency in terms of other’s currency.
Q: If the price level rises and the money wage rate remains constant, what happens to the quantity of…
A: The price level in economy is decided by the aggregate demand and aggregate supply. And wage paid to…
Q: Draw a graph illustrating the determination of the equilibrium exchange rate between the South…
A: Exchange rate refers to the price of one currency in term of another currency. In other words, how…
Q: TRUE OR FALSE. If the seller cannot change his quantity supplied of good “w” after the price of good…
A: Ans. The elasticity of supply for good measures the responsiveness of change in the quantity…
Q: B. Suppose that the economy is characterized by the following behavioral equations: • C= 240 +0.75…
A: Here we are given various components of the demand function: consumption , investment &…
Step by step
Solved in 4 steps with 3 images
- Splitting Pizza: You and a friend are in an Italian restaurant, and the owner offers both of you a free eight-slice pizza under the following condition. Each of you must simultaneously announce how many slices you would like; that is, each player i ∈ 1, 2 names his desired amount of pizza, 0 ≤ si ≤ 8. If s1 + s2 ≤ 8 then the players get their demands (and the owner eats any leftover slices). If s1 + s2 > 8, then the players get nothing. Assume that you each care only about how much pizza you individually consume, and the more the better.What outcomes can be supported as pure-strategy Nash equilibria?Consider the bargaining problem of splitting a pie of size 1 with utility u(x1) = x1 for player 1 and v(x2) = 2x2 − x22 for player 2, where x1 and x2 denote the share of the pie for player 1 and 2 respectively. a) Consider the bargaining problem of the two players. Find the utility possibility frontier S. b) What is the Nash bargaining solution for this problem (i.e., on which division of the pie (?₁,?₂) will players agree), if the disagreement outcome (the utilities players obtain in case of disagreement) is d1 = d2 = 0? c) What is the Nash bargaining solution if the disagreement outcome is any d1 and d2 in S?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.
- Two friends, Khalid and Mahmood, are going to a watch a world cup football match. They play a simple game in which they hold out one or two fingers to decide who will pay for the other's ticket. Khalid wins if the fingers held out add up to an even number; Mahmood wins if the fingers held out add up to an odd number. The price of the ticket is 25 OMR. Construct a payoff matrix for the game. Is there a unique Nash equilibrium in this game? Which strategy should a player use to maximize her chances of winning the game?Suppose an emissions standard is implemented that required each plant to reduce its pollution by 5,000 tons. What will be the Total Cost of Pollution Reduction for the entire industry? Suppose instead of an emissions standard, the government implements a tradeable permit system. Each firm is now given 3,000 permit each (1 permit equals 1 ton of pollution allowed). How many permits will be traded between the 2 firms? (Hint: The total amount that need to be reduced is 10,000 tons. i.e. Q1 + Q2 = 10,000)Three players (Allen, Mark, Alice) must divide a cake among them. The cake is divided into three slices.The table below shows the value of each slice in the eyes of each of the players. S1 S2 S3 Allen $7.00 $6.00 $5.00 Mark $4.00 $4.00 $4.00 Alice $5.00 $4.00 $6.00 Which of the slices does Allen deem fair? Group of answer choices S1 and S2 S1 and S3 S2 and S3 S1, S2, and S3 S1 only
- Jill and Jack both have two pails that can be used to carry water down from a hill. Each makes only one trip down the hill, and each pail of water can be sold for $4. Carrying the pails of water down requires considerable effort. Both Jill and Jack would be willing to pay $2 each to avoid carrying one pail down the hill, and an additional $3 to avoid carrying a second pail down the hill.a. If Jack and Jill each must decide whether to carry one or two pails of water down from the top of the hill, how many pails will each child choose to carry? ___ pail(s)b. Jill and Jack’s parents are worried that the two children don’t cooperate enough with one another. Suppose they make Jill and Jack share equally their revenues from selling the water. Given that both are self-interested, construct the payoff matrix for the decisions Jill and Jack face regarding the number of pails of water each should carry. Carry 1 pail Jack Carry 2 pails…3 7- Consider an election contested by two candidates L & R; when L spends $x million on advertising and R spends $y million. L will get a share x/(x+y) of the votes and R will get y/(x+y). Assume the cost of campaigning is proportional to direct campaign expenditures x & y. Let us suppose that candidate L payoff is measured by its vote percentage minus its advertising expenditure 100 x/(x+y) – x. Similarly, candidate R’s payoff is 100y/(x+y) – y. Find the best response function for each candidate? What is the NE? Is it efficient?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.
- Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $36; Oli's cost per ton is $40. If the market price of Pacific halibut is $48 per ton, what is the minimum amount per ton that Melanie would have to offer Oli to convince him to sell Melanie his ITQs? Multiple Choice $6. $8. $12. $4.Poker players are known to bluff once in a while, meaning that they will make a large bet despite holding inferior cards in an effort to pressure other players to fold their hands. Would bluffing be considered a dominant strategy in poker? a) No, because if a player bluffs on every hand, other players will catch on and call his or her bluff. b) No, because bluffing is usually not successful and is therefore considered a secondary strategy. c) Yes, because it usually results in a winning hand. d) Yes, because it is the main strategy used by players.Suppose you are one of two producers of aluminium. You (firm 1) and your competitor (firm 2) announce simultaneously the quantities Q1 and Q2 (in tonnes) and earn the profits Q1*P(Q) and Q2*P(Q), respectively, where P(Q) = 50 – Q is the market price per tonne of aluminium and Q = Q1 + Q2 is the total output. Assume, for simplicity, that there are no production costs. a) Can the collusive agreement to produce Q1 = Q2 = 12 tons of aluminium be sustained in a Nash equilibrium of the one-shot game? Explain your answer. b) What is your best response, when firm 2 chooses to produce Q2 = 14 tonnes? Does Q2 = 14 and your best response to it form part of a Nash equilibrium? Explain.…
