Answer the following questions according to Hecksher Ohlin theorem. a) Explain if factor price equalization theorem is valid in the case of factor intensity reversal. Why or why not?
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- In the two good specific factor model with diminishing returns to the mobile factor the utility possibility frontier is a straight line. True FalseConsider a two-person exchange economy in which initial endowments for both individuals are such that (e1 = e1) = (1,1). Suppose the two individuals have the following indirect utility functions: V1 (x, y) = ln M1 - a ln Px - (1-a) ln Py V2 (x, y) = ln M2 -b ln Px - (1-b) ln Py Where Mi is the income level of person i and Px and Py are the prices for goods x and goods y, respectively. a) Calculate the market clearing prices.Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator who chooses the best proposal (effectively giving one side or the other $2 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $400,000) who is effective at preparing the proposal in the best light. If neither hires lawyers or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win three-quarters of the time. a. Diagram this simultaneous-move game. b. What is the Nash equilibrium of the game? c. Would the sides want to ban lawyers?
- Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator who chooses the best proposal (effectively giving one side or the other $1 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $200,000) who is effective at preparing the proposal in the best light. If neither hires lawyers or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win three-quarters of the time.1. Diagram this simultaneous-move game.2. What is the Nash equilibrium of the game?3. Would the sides want to ban lawyers?Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator who chooses the best proposal (effectively giving one side or the other $1 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $200,000) who is effective at preparing the proposal in the best light. If neither hires lawyers or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win three-quarters of the time. Diagram this simultaneous move game. What is the Nash Equilibrium of the game? Would the sides want to ban lawyers?Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal (effectively giving one side or the other $2 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $300,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win four fifths, or 0.8, of the time. Use the given information to fill in the expected payoff, in dollars, for each cell in the matrix. (Hint: To find the expected payoff, multiply the probability of winning by the dollar amount of the payoff. Be sure to account for lawyer costs, which are incurred with certainty if a lawyer is hired.) Management (M) No Lawyer Lawyer Labor (L) No Lawyer L: , M: L: , M: Lawyer L: , M: L: , M: The Nash…
- Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal (effectively giving one side or the other $1 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $300,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win three fourth, or 0.75, of the time. Use the given information to fill in the expected payoff, in dollars, for each cell in the matrix. (Hint: To find the expected payoff, multiply the probability of winning by the dollar amount of the payoff. Be sure to account for lawyer costs, which are incurred with certainty if a lawyer is hired.) Management (M) No Lawyer Lawyer Labor (L) No Lawyer L: , M: L: , M: Lawyer L: , M: L: , M: The Nash…Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal (effectively giving one side or the other $5 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $200,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win nine tenths, or 0.9, of the time. Use the given information to fill in the expected payoff, in dollars, for each cell in the matrix. (Hint: To find the expected payoff, multiply the probability of winning by the dollar amount of the payoff. Be sure to account for lawyer costs, which are incurred with certainty if a lawyer is hired.) Management (M) No Lawyer Lawyer Labor (L) No Lawyer L: , M: L: , M: LawyerL: , M: L: , M: The Nash equilibrium for this game is for…Given the demand and supply function for three inter-dependent commodities QD1 = 45−2P1+2P2−2P3 QD2 = 16+2P1−P2+2P3 QD3 = 30−P1+2P2−P3 and QS1 = −5+2P1 QS2 = −4+2P2 QS3 = −5+P3 respectively. Find the equilibrium prices and quantities of this three-commodity market model.
- Which statement best summarizes the research on the construct of male gender identity called machismo? Group of answer choices Macho men can be aggressive, courageous, or protective. There is no consensus. Macho men share many different characteristics; but, the only consistent trait is infidelity. Macho males are exclusively from Hispanic/Latino societies Men from any culture who are aggressiveness, violent, and dominant over women are macho.market clearing condition would mean that the market demand equals to market supply for a particular good and for a walrasian equilibrium the consumers are maximizing utility and market clearing conditions are met. Where is the utility maximizing bundles for good x and y for a consumer?Suppose there are two countries that are identical in their factor endowments. Both would like to consume both passenger cars and commercial vehicles, industries in which there are economies of scale. In the absence of trade, each country would have both industries. If they could trade, both could benefit by specializing and taking advantage of economies of scale to lower their costs of production. Assume that once trade becomes possible, country A specializes in producing passenger cars and country B specializes in producing commercial vehicles. Because of economies of scale, the cost of passenger cars relative to commercial vehicles is lower in country A than in country B. Explain why we would expect to observe trade in similar products, known as intra- industry trade, when production technology is characterized by economies of scales? Who are the winners and losers in this example? How does your result compare with that of the winners and losers in the CORE textbook example of the…